Microsoft, OpenAI will build a $100b next-generation AI data center in the US.

Microsoft, OpenAI will build a $100b next-generation AI data center in the US.

A data centre project that might cost up to $100 billion and contain the artificial intelligence supercomputer “Stargate,” scheduled to launch in 2028, is being planned by Microsoft, and OpenAI, according to a report published in The Information on Friday. 

The need for AI data centres, which can do more complex jobs than traditional data centres, is rising as a result of the rapid adoption of generative artificial intelligence technologies.

The Information stated that Microsoft would probably finance the project, which is projected to be 100 times more expensive than some of the biggest existing data centres. 

According to the report, the corporations plan to develop a series of supercomputers over the next six years, the largest of which would be the U.S.-based model. 

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The Information gave an estimated cost of $100 billion

The supercomputers have been divided into five phases by Altman and Microsoft, with Stargate representing the fifth phase.

According to the report, Microsoft is developing a fourth-phase supercomputer that will be smaller and intended for release in 2026 for OpenAI. 

Microsoft and OpenAI are currently in the middle of the third phase of their five-phase plan. A large amount of the expenses for the next two phases will go into purchasing the necessary AI processors.

AI chips are frequently priced highly. Chipmaker Nvidia launches early in March, CEO Jensen Huang told CNBC that the cost of the most recent “Blackwell” B200 artificial intelligence processor will range from $30,000 to $40,000. 

Microsoft also announced a pair of specially produced CPU chips in November of last year. 

According to the article, the new project will be made to function with chips from several vendors.

In an email, a Microsoft representative stated, “We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability.”

Regarding the report concerning the scheduled launch of the Stargate supercomputer, the spokesperson refrained from making any immediate comments. 

According to the source, the plan’s costs might surpass $115 billion, more than three times what Microsoft spent on capital expenditures on servers, buildings, and other equipment last year.

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