Jacob Brown
Microsoft and OpenAI are working on projects for a data center project that could cost as much as $100 billion, including an artificial intelligence supercomputer named “Stargate” set to release in 2028, The Information wrote on Friday.
Microsoft and OpenAI are reportedly considering a massive project to build a supercomputer in the United States, aiming to meet the skyrocketing demand for advanced AI data centers.
The Information reported that Microsoft is likely to finance the project, which could be 100 times more expensive than existing data centers.
Rising Demand for Advanced AI Data Centers
The rapid adoption of generative artificial intelligence technology has led to an exponential increase in demand for AI data centers capable of handling more advanced tasks.
As a result, Microsoft and OpenAI are exploring the development of a U.S.-based supercomputer, which would be the largest in a series of such projects planned over the next six years.
Project Details
The proposed supercomputer, codenamed “Stargate,” is estimated to cost around $100 billion, according to sources familiar with the discussions.
The project is part of a five-phase plan devised by OpenAI CEO Sam Altman and Microsoft, with significant investments required for acquiring AI chips, a crucial component of the supercomputer.
Phased Approach
The project is divided into five phases, with “Stargate” serving as the final phase. Microsoft and OpenAI are currently in the third phase, and a smaller fourth-phase supercomputer is slated for launch around 2026.
The ambitious endeavor underscores the companies’ commitment to advancing AI research and development.
Addressing Cost Challenges
One of the main challenges of the project is the high cost of AI chips, which can range from $30,000 to $40,000 per unit.
To mitigate this, Microsoft plans to work with various chip suppliers and leverage custom-designed computing chips announced last year. The project aims to create a flexible and scalable infrastructure capable of accommodating diverse AI workloads.
Conclusion
The proposed supercomputer project reflects Microsoft and OpenAI’s ambition to push the boundaries of AI technology. By investing in cutting-edge infrastructure, the companies seek to address the growing demand for advanced AI capabilities and accelerate innovation in the field.
