(Reuters) – Microsoft and OpenAI are working on plans for a data center project that could cost up to $100 billion and include an artificial intelligence supercomputer called Stargate, scheduled to launch in 2028, The Information reported on Friday.
OpenAI did not immediately respond to Reuters requests for comment.
The rapid adoption of generative AI technologies has led to skyrocketing demand for AI data centers capable of solving more complex problems than traditional data centers.
The Information reported that Microsoft (NASDAQ:) will likely fund the project, which is expected to be 100 times more expensive than some of the largest existing data centers, citing people involved in private conversations about the proposal .
The report added that the proposed US supercomputer would be the largest in a series that the companies plan to build over the next six years.
The Information attributed the estimated $100 billion cost to a person who talked to Altman about it and a person who looked at some of Microsoft’s initial cost estimates. He did not indicate these sources.
Altman and Microsoft divided the development of supercomputing into five stages, the fifth of which would be Stargate. According to the report, Microsoft is working on a smaller Phase 4 supercomputer for OpenAI that will launch around 2026.
The report said Microsoft and OpenAI are in the middle of the third phase of a five-phase plan, with much of the cost of the next two phases related to acquiring the necessary artificial intelligence chips.
Artificial intelligence chips often sell for high prices. Nvidia (NASDAQ:) CEO Jensen Huang told CNBC earlier in March that Blackwell’s latest B200 artificial intelligence chip will cost between $30,000 and $40,000.
Last November, Microsoft also announced a duo of specially designed computer chips.
The report states that the new design will be designed to work with chips from different suppliers.
“We are always planning for the next generation of infrastructure innovations needed to further push the boundaries of what artificial intelligence can do,” a Microsoft spokesperson said in a statement emailed to Reuters. The spokesman did not directly comment on the report about the planned launch of the Stargate supercomputer.
Costs for the plan could exceed $115 billion, more than triple Microsoft’s capital spending last year on servers, buildings and other equipment, the report said.