Microsoft and OpenAI have joined forces for an innovative data center venture speculated to reach a staggering $100 billion in costs, showcasing an AI supercomputer known as “Stargate” scheduled for launch in 2028. This endeavor is a direct response to the escalating need for cutting-edge AI capabilities, surpassing the limitations of traditional data center setups. Microsoft is anticipated to take the lead in funding, signifying a substantial increase in investment compared to current data center standards.
The ambitious project envisions a series of supercomputers, with Stargate as the pinnacle in a five-phase endeavor. The development is currently in its third phase, with substantial investments earmarked for procuring AI chips, a critical component for enhancing computational performance. The cost estimates for the endeavor, attributed to undisclosed sources, suggest potential expenses exceeding $115 billion, dwarfing Microsoft’s previous capital spending.
The prices of AI chips, which play a crucial role in determining project expenses, are significantly elevated. Nvidia’s CEO revealed that their most recent AI chip, the “Blackwell” B200, is priced between $30,000 and $40,000. Microsoft’s decision to create bespoke computing chips underscores its dedication to innovation and scalability within AI infrastructure. Furthermore, the project is designed to be flexible, capable of integrating chips from different vendors to ensure adaptability.
While specifics regarding funding and technical details remain undisclosed, Microsoft expressed a forward-looking stance, emphasizing continual infrastructure innovation to advance AI capabilities. However, neither Microsoft nor OpenAI has officially commented on the reported launch of the Stargate supercomputer.
The partnership between Microsoft and OpenAI marks a pivotal advancement in strengthening AI infrastructure, highlighting the increasing significance of supercomputing in fueling AI progress. As the initiative progresses over the forthcoming six years, it holds the potential to revolutionize the realm of AI research and development, potentially reshaping sectors and accelerating technological advancements.
