A report indicates that Microsoft and OpenAI are planning a project to build a data center with costs potentially reaching $100 billion, which will include a supercomputer powered by artificial intelligence called "Stargate." The Information website reported that participants in private discussions regarding the proposal stated that Microsoft will likely be responsible for financing the project, which will be 100 times more expensive than some of the largest existing data centers.
According to the report, the next phase of major AI updates for OpenAI is expected to launch by early next year, with Microsoft executives looking to unveil Stargate as soon as 2028. The proposed computer, set to be located in the United States, will be the largest in a series of facilities the two companies aim to build over the next six years.
The website sourced the initial cost estimate of $100 billion from an individual who spoke with Sam Altman, CEO of OpenAI, and another who reviewed some of Microsoft's initial cost estimates. The website did not identify these sources. Altman and Microsoft employees have deployed supercomputers over five phases, with Stargate being the fifth phase. Microsoft is working on a smaller supercomputer than phase four for OpenAI, targeting its launch around 2026, according to the report.
The report noted that Microsoft and OpenAI are midway through the third phase of their five-phase plan, and a significant portion of the costs for the next two phases is allocated for purchasing the necessary AI chips. Frank Shaw, a spokesperson for Microsoft, told the website, "We are always planning for the next generation of infrastructure innovations needed to continue pushing the boundaries of AI capabilities."
The proposed efforts could exceed $115 billion, which is more than three times what Microsoft spent last year on capital expenditures for servers, buildings, and other equipment.
