Microsoft, OpenAI plan $100 billion data-center project
Microsoft (MSFT.O), opens new tab and OpenAI are working on
plans for a data center project that could cost as much as $100 billion and
include an artificial intelligence supercomputer called "Stargate"
set to launch in 2028, The Information reported.
OpenAI did not immediately respond to Reuters' requests for comment.
Rapid adoption of generative artificial intelligence technology has led
to sky-rocketing demand for AI data centers capable of handling more advanced
tasks than traditional data centers.
The Information reported that Microsoft would likely finance the
project, which is expected to be 100 times more costly than some of the biggest
existing data centers, citing people involved in private conversations about
the proposal.
The proposed U.S.-based supercomputer would be the biggest in a series
the companies are looking to build over the next six years, the report added.
The Information attributed the tentative cost of $100 billion to a
person who spoke to Altman about it and a person who has viewed some of
Microsoft's initial cost estimates. It did not identify those sources.
Altman and Microsoft have spread the supercomputers across five phases,
with Stargate as the fifth phase. Microsoft is working on a smaller,
fourth-phase supercomputer for OpenAI 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 significant portion of the cost for the next two phases
involving acquiring the needed AI chips, the report said.
AI chips are often sold at high prices. Chip company Nvidia (NVDA.O), opens new tab CEO Jensen Huang told CNBC
earlier in March that the latest "Blackwell" B200 artificial
intelligence chip will be priced between
$30,000 and $40,000.
Microsoft had also announced a
duo of custom-designed computing chips in November last year.
The report said the new project would be designed to work with chips
from different suppliers.
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