Report: Microsoft and OpenAI Collaborate on $100 Billion Plan to Develop ‘Stargate’ Supercomputer, Revolutionizing AI Data Centers

Microsoft and OpenAI are reportedly teaming up to develop a groundbreaking artificial intelligence supercomputer dubbed “Stargate” by 2028, a recent report by The Information revealed. The ambitious project, estimated to cost up to $100 billion, aims to meet the increasing demand for AI data centers capable of handling complex tasks driven by generative artificial intelligence technology.

As per the report, Microsoft is expected to lead the funding for the project, surpassing current data center expenses significantly. The proposed supercomputer, to be located in the United States, will be the first in a series of similar projects planned over the next six years.

The project’s roadmap, outlined by Altman and Microsoft, includes five phases, with “Stargate” as the pinnacle achievement in the fifth phase. Prior to this, Microsoft is working on a smaller-scale supercomputer expected to launch around 2026.

A key component of the project’s cost is the acquisition of specialized AI chips, priced between $30,000 to $40,000, essential for powering advanced AI capabilities. Microsoft’s commitment to advancing AI is evident through its custom-designed computing chips announced last year, aligning with its plans for the supercomputing initiative.

Projected expenses for the endeavor could surpass $115 billion, a substantial increase compared to Microsoft’s previous infrastructure spending. This collaboration between Microsoft and OpenAI aims to set a new standard in AI data centers, revolutionizing the capabilities and applications of artificial intelligence technology.