Microsoft, OpenAI plan data centre works
Bengaluru, March 31: Microsoft and OpenAI are working on plans for a data centre project that could cost as much as $100 billion and include an artificial intelligence (AI) supercomputer called “Stargate” set to launch in 2028.
Rapid adoption of generative artificial intelligence technology has led to sky-rocketing demand for AI data centres capable of handling more advanced tasks than traditional data centres.
Microsoft would likely finance the project, which is expected to be 100 times more costly than some of the biggest existing data centres, according to a report.
The proposed U.S.-based supercomputer would be the biggest in a series the companies are looking to build over next six years.
Altman and Microsoft have spread the supercomputers across five phases, with Stargate as the fifth phase. Microsoft is working on a smaller, fourthphase supercomputer for OpenAI to be launched around 2026, it said..
Microsoft and OpenAI are in the middle of the third phase of the fivephase plan, with a significant portion of the cost for next two phases involving acquiring the needed AI chips, the report said.
AI chips are often sold at high prices. Chip company Nvidia chief executive officer 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 Nov. last year.
The report said the new project would be designed to work with chips from different suppliers.
“We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability,” a Microsoft spokesperson said.
Expenses for the plan could exceed $115 billion, more than triple Microsoft’s expenditure last year on capital spending for servers, and other equipment, it stated.