Microsoft and OpenAI’s $100 Billion ‘Stargate’ AI Supercomputer Set for 2028 Launch: Report Insights

(Last Updated On: March 30, 2024)

In a significant development for the tech industry, Microsoft, the creator of Windows, and OpenAI, a prominent AI research company, are reportedly planning a colossal data center project. This venture, which could cost up to $100 billion, is expected to include an AI supercomputer, potentially named “Stargate,” set to debut in 2028.

The Rise of AI Technologies and Data Center Demand

The surge in AI technologies has led to an increased demand for data centers capable of handling advanced processing. As AI applications become more sophisticated, the need for powerful computational resources grows exponentially. This has set the stage for projects like the one Microsoft and OpenAI are purportedly planning.

The Stargate Supercomputer: A Glimpse into the Future

According to a report by The Information, the proposed supercomputer, Stargate, could be the largest iteration in a series of planned developments over the next six years. This project could be one of the most significant data centers in existence, with costs potentially reaching $100 billion. The substantial investment is attributed to the need for purchasing AI chips for upcoming phases, a task that has become increasingly expensive in recent years.

The Phases of the Project

The project is reportedly in its third phase, with the fourth phase supercomputer expected to materialize in 2026. Stargate is anticipated to be part of the fifth and final phase. The escalating costs are a reflection of the ambitious scale of the project and the cutting-edge technology required to realize it.

The Cost of Powering AI Ambitions

The price of AI chips, essential for powering such advanced supercomputers, has skyrocketed. For instance, Nvidia’s new ‘Blackwell’ B200 AI chip is priced between $30,000 to $40,000. Microsoft’s commitment to custom computing chips, announced in November 2023, is part of its strategy to keep pace with these technological demands.

Microsoft’s Investment in the Future of AI

A Microsoft spokesperson told Reuters, “We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.” However, details regarding the Stargate supercomputer were not disclosed. The projected expenses for this plan could exceed $115 billion, more than triple Microsoft’s capital spending in 2023 on servers, buildings, and other equipment.

Conclusion

The collaboration between Microsoft and OpenAI on this monumental data center project underscores the growing importance of AI technologies and the need for robust infrastructure to support them. As the industry looks ahead to the debut of the Stargate supercomputer in 2028, the tech world waits with bated breath to see how this venture will shape the future of artificial intelligence.

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