Microsoft and OpenAI plan to spend $100 billion to build artificial intelligence supercomputer data center

Microsoft and OpenAI are developing plans for a data center project that could cost up to $100 billion and include an artificial intelligence supercomputer called “Stargate” that will be launched in 2028, The Information reported on Friday.

OpenAI did not immediately respond to Reuters’ request for comment.

The rapid adoption of generative AI technologies has led to a surge in demand for AI data centers capable of handling more advanced tasks than traditional data centers.

Citing people involved in private conversations about the proposal, The Information said Microsoft may provide funding for the project, which is expected to cost 100 times more than some of the largest existing data centers.

The proposed US supercomputer would be the largest in a series of supercomputers the companies plan to build over the next six years, the report added.

The Information attributed the tentative cost of $100 billion to a person who spoke to Altman and a person who viewed some of Microsoft’s initial cost estimates. It did not identify those sources.

Ultraman and Microsoft divided supercomputers into five stages, of which “Stargate” is the fifth stage. Microsoft is reportedly developing a smaller Phase 4 supercomputer for OpenAI, which will be launched around 2026.

The report said that Microsoft and OpenAI are in the middle of the third phase of the five-phase plan, and a large part of the cost of the next two phases involves purchasing the required artificial intelligence chips.

AI chips tend to sell for a lot of money. Jensen Huang, CEO of chip company Nvidia, told CNBC in early March that the latest “Blackwell” B200 artificial intelligence chip would cost between $30,000 and $40,000.

Microsoft also launched two custom-designed computing chips last November.

The new project will be designed to work with chips from different suppliers, the report said.

“We have been planning the next generation of infrastructure innovations to continue to advance artificial intelligence capabilities,” a Microsoft spokesperson said in an emailed statement to Reuters. The spokesperson did not directly comment on plans to launch Stargate. Comment on Supercomputer Reports.

The report said the plan could cost more than $115 billion, more than three times Microsoft’s capital spending on servers, buildings and other equipment last year.

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