Microsoft and OpenAI to launch ‘Stargate’ supercomputer, a $100 billion artificial intelligence data center project

Microsoft and OpenAI are joining forces to build a huge data center project that is expected to cost up to $100 billion. According to reports, the core of this plan is to develop an advanced artificial intelligence supercomputer called “Stargate”.

According to data Report Microsoft is familiar with private discussions about the proposal and is expected to take the lead in financing the ambitious project. The scale of the investment will dwarf existing data centers by a factor of 100, marking a paradigm shift in adapting to the growing demands for artificial intelligence infrastructure.

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Growing demand for advanced artificial intelligence infrastructure

The surge in demand is driven in large part by the rapid integration of generative AI technologies, which requires new types of data centers capable of handling more complex computing tasks.

OpenAI plans to launch its next major artificial intelligence upgrade in the coming year and is preparing to align its progress with the launch of Stargate, which is expected to be launched as early as 2028, the report said.

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The envisioned supercomputer, based in the United States, is expected to be the flagship device in a series of upcoming projects to be realized over the next six years.

While specific details about the massive $100 billion investment have been attributed to undisclosed sources, discussions with OpenAI CEO Sam Altman and insight into Microsoft’s preliminary cost estimates hint at the sheer scale of the effort.

Microsoft’s strategic roadmap for advancing supercomputing capabilities consists of five distinct phases, with Stargate marking the culmination of this evolution. This will be preceded by a Phase 4 supercomputer, expected to debut around 2026, tailored to OpenAI’s requirements.

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Currently, Microsoft and OpenAI are in the third phase of their partnership, earmarking a significant portion of their spending for specialized artificial intelligence chips that are critical to powering these cutting-edge facilities.

Microsoft spokesman Frank Shaw emphasized that the eternal drive for infrastructure innovation is critical to pushing the boundaries of artificial intelligence capabilities.According to Reuters ReportThe ambitious effort is expected to cost more than $115 billion, representing a huge leap and more than three times Microsoft’s capital expenditures the previous year.