Microsoft and OpenAI plan ‘Stargate’ supercomputer, a game-changer in AI data centers

Public Relations Web Desk: According to a recent report by The Information, a collaboration is reportedly underway between tech giant Microsoft and OpenAI, with plans for an unprecedented data center project that could see the rise of an artificial intelligence supercomputer called “Stargate” by 2028 . The ambitious venture, which could be worth up to $100 billion, comes amid a surge in demand for AI data centers capable of handling increasingly complex tasks due to the rapid adoption of generic artificial intelligence technology. According to the report, talks about the proposal indicate that Microsoft is ready to lead the funding, a move that is expected to significantly exceed the expenses associated with current data center operations. The envisioned supercomputer, to be located in the United States, is anticipated to be a major installment in a series of similar projects planned over the next six years, as detailed by The Information.

Reportedly, the project’s roadmap, outlined by Altman and Microsoft, involves five distinct phases, with “Stargate” placed as the pinnacle achievement in the fifth phase. Earlier, Microsoft is said to be currently developing a small-scale supercomputer for release around 2026. A large portion of the estimated costs for the upcoming phases are attributed to the acquisition of specialized AI chips, an essential component for powering advanced AI capabilities. According to Nvidia CEO Jensen Huang, the price of these chips could range from $30,000 to $40,000.

Microsoft’s approach to advancing AI capabilities is further underlined by last year’s announcement of custom-designed computing chips, which complement its ambitious plans for a new supercomputing initiative, which will accommodate chips from different suppliers. It has been envisioned to do so. Estimated spending for this effort could exceed $115 billion, which represents a significant increase compared to Microsoft’s capital spending on infrastructure last year, the report said.