2024-04-04
Microsoft and OpenAI are collaborating on a groundbreaking data center project that could have a staggering price tag of $100 billion. This ambitious endeavor includes the development of an artificial intelligence supercomputer named "Stargate," which is set to be launched in 2028. The Information, a reliable source, reported on this exciting venture.
Despite efforts to reach out to OpenAI for comment, they have yet to respond to Reuters' inquiries. The rapid rise in demand for AI data centers, driven by the widespread adoption of generative artificial intelligence technology, has necessitated the creation of facilities capable of handling more complex tasks than conventional data centers.
According to The Information, Microsoft is likely to finance this project, which is estimated to be a hundred times more expensive than even the largest existing data centers. This information is based on private conversations with individuals familiar with the proposal. Furthermore, the report reveals that this proposed supercomputer, based in the United States, will be the flagship of a series of supercomputers planned for construction over the next six years.
The projected cost of $100 billion was disclosed by a source who spoke with Altman, as well as an individual privy to Microsoft's preliminary cost estimates. However, the specific identities of these sources were not disclosed.
The project has been divided into five phases, with Stargate representing the fifth and final phase. In addition, Microsoft is working on a smaller fourth-phase supercomputer for OpenAI, which is expected to be launched by 2026.
The third phase of this five-phase plan is currently underway, with the subsequent two phases requiring significant investment in AI chips, according to The Information. These chips are often sold at high prices, with Nvidia's CEO mentioning that their latest artificial intelligence chip, "Blackwell" B200, will retail between $30,000 and $40,000.
Microsoft had previously announced the development of custom-designed computing chips in November of the previous year. The new project aims to make use of chips from various suppliers.
A Microsoft spokesperson, in response to the report, stated that the company is constantly planning for future infrastructure innovations in order to push the boundaries of AI capabilities. However, they did not directly comment on the planned launch of the Stargate supercomputer.
The costs associated with this project could exceed $115 billion, which is more than three times Microsoft's capital spending on servers, buildings, and equipment in the previous year, as reported by The Information.
