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Microsoft and OpenAI Collaborate on $100 Billion AI Supercomputer Project ‘Stargate’ for 2028 Launch

Written by Moanis Hawass Saturday, March 30, 2024 10:00 PM

A recent report revealed that my company Microsoft and OpenAI are working on plans for a data center project that could cost up to $100 billion and include an AI supercomputer called “Stargate” scheduled to launch in 2028, The Information reported.

The rapid adoption of generative artificial intelligence technology has led to a significant rise in demand for artificial intelligence data centers capable of handling more advanced tasks than traditional data centers, and the information stated that Microsoft is likely to finance the project, which is expected to be 100 times more expensive than some. The largest data centers in existence, according to people involved in private conversations about the proposal.

The report added that the proposed supercomputer, based in the United States, would be the largest in a series that companies are looking to build over the next six years, and the information attributed the initial cost of $100 billion to a person who spoke to Altman about this topic and to a person who saw some of the company’s initial cost estimates. Microsoft.

Altman and Microsoft are deploying the supercomputers across five phases, with Stargate as the fifth phase, while Microsoft is developing a smaller supercomputer for OpenAI’s fourth phase to be launched around 2026, according to the report.

Microsoft and OpenAI are in the middle of the third phase of the five-phase plan, with a large portion of the cost of the next two phases including obtaining the necessary AI chips, the report said.

AI chips often sell at high prices, and Nvidia chip CEO Jensen Huang told CNBC earlier in March that the latest “Blackwell” B200 AI chip would be priced between $30,000 and $40,000.

Microsoft also announced a duo of specially designed computing chips in November last year. The report said the new project would be designed to work with chips from different suppliers. A Microsoft spokesperson said in an emailed statement to Reuters: “We are always planning for the next generation of Infrastructure innovations needed to continue pushing the boundaries of AI capabilities.”

The spokesman did not comment directly on the report regarding the planned launch of the Stargate supercomputer. The report stated that the plan’s expenses could exceed $115 billion, more than three times Microsoft’s spending last year on capital spending on servers, buildings and other equipment.

2024-03-30 20:00:00
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