Microsoft & OpenAI plan a $100 billion data center project with an AI supercomputer named 'Stargate' by 2028 to meet the growing demand for advanced AI capabilities.
are reportedly planning a joint data center project that could reach $100 billion in cost. The project is said to culminate in the launch of a massive artificial intelligencedata centers that can handle increasingly complex tasks. The rise of generative AI technology is a major driver behind this demand.is expected to shoulder the majority of the financial burden for the project, according to sources familiar with the discussions.
The supercomputer, to be located in the United States, would be the centerpiece of a multi-phase initiative spanning six years. The project is reportedly divided into five phases, with Stargate representing the final stage. Currently, Microsoft is developing a smaller supercomputer for OpenAI, slated for release in 2026.
Acquiring the necessary AI chips is expected to be a significant expense for the project’s later phases. These specialized chips can cost between $30,000 and $40,000 each, as indicated by Nvidia CEO Jensen Huang.The Information reports that the project’s projected expenditures could surpass $115 billion, exceeding Microsoft’s prior year’s capital spending on infrastructure by a considerable margin.
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