Microsoft, OpenAI plan $100 billion data center project, according to media reports By Reuters

(Reuters) – Microsoft and OpenAI are moving ahead with plans for data center projects that could cost up to $100 billion, including an artificial intelligence supercomputer called “Stargate” scheduled for launch in 2028. The Information reported Friday.

OpenAI did not immediately respond to Reuters’ request for comment.

The rapid adoption of generative artificial intelligence technologies has led to a surge in demand for AI data centers that can handle more advanced workloads than traditional data centers.

Microsoft (NASDAQ:) is likely to finance the project, which is expected to cost 100 times more than some of its largest existing data centers, The Information reported, citing people involved in private conversations about the proposal. It was reported that there was.

The report added that the proposed US-based supercomputer would be the largest in a series that the companies are looking to build over the next six years.

That information comes from people who spoke to Altman about it and who have seen some of Microsoft’s early cost estimates, which put the tentative cost at $100 billion. The source was not identified.

Altman and Microsoft spread their supercomputers over five stages, with Stargate being stage five. According to reports, Microsoft is developing a small, stage 4 supercomputer for OpenAI that could be launched around 2026.

The report said Microsoft and OpenAI are progressing through phase three of their five-phase plan, with a significant portion of the next two phases’ costs associated with purchasing the necessary AI chips.

AI chips often sell for high prices. Chip company Nvidia (NASDAQ:) CEO Jensen Huang told CNBC in early March that its latest “Blackwell” B200 artificial intelligence chip would cost between $30,000 and $40,000.

Microsoft also announced two types of custom-designed computing chips in November last year.

The new project will be designed to work with chips from a variety of vendors, according to the report.

“We are always planning the next generation of infrastructure innovations needed to continue to push the boundaries of AI capabilities,” a Microsoft spokesperson said in an emailed statement to Reuters. A spokesperson did not comment directly on reports about plans to launch the Stargate supercomputer.

The cost of the plan could exceed $115 billion, according to the report, which is more than three times the capital spending Microsoft spent on servers, buildings and other equipment last year.