Microsoft and OpenAI Eye $100 Billion AI Supercomputer Venture for 2028

Microsoft and OpenAI Eye $100 Billion AI Supercomputer Venture for 2028

Emilio Fernandez
1 min read

In a bold move that underscores the rapid evolution of artificial intelligence (AI), Microsoft, alongside OpenAI, is reportedly steering towards an ambitious venture. The duo is eyeing the development of a groundbreaking data center project, with costs potentially soaring to $100 billion. Central to this venture is the creation of 'Stargate,' an AI supercomputer with a launch target set for 2028. This initiative highlights the burgeoning demand for generative AI technology and the infrastructural needs that accompany such advanced capabilities.

The project's vast financial implications suggest a paradigm shift in data center investment, proposing a project scale unprecedented in the industry. This initiative is not just about expanding current capacities but redefining the infrastructure required for next-level AI tasks. The proposed supercomputer, 'Stargate,' symbolizes a significant leap forward, with Microsoft shouldering the financial heft of this futuristic venture.

Behind the scenes, this ambitious plan is meticulously structured across five phases, with 'Stargate' marking the culmination. As of now, Microsoft and OpenAI find themselves in the thick of the third phase, with a considerable focus on acquiring AI chips, a crucial component dictating the project's forward momentum. The cost of these chips, as highlighted by Nvidia’s CEO Jensen Huang, can range between $30,000 and $40,000 for the latest 'Blackwell' B200 AI chip, underlining the high-stakes investment in cutting-edge technology.

Moreover, the project’s scope extends beyond the construction of a single supercomputer. Microsoft has its sights set on a series of supercomputers leading up to 'Stargate,' each phase a step closer to achieving unprecedented AI capabilities. This forward-looking strategy also emphasizes the need for versatile infrastructure capable of integrating chips from various suppliers, ensuring the project's adaptability and resilience.

Microsoft's commitment to pushing the boundaries of AI is evident in their statement on planning for the next generation of infrastructure innovations. However, the financial contours of this project, potentially exceeding $115 billion, underscore the colossal investment and the transformative potential of the venture. It represents a strategic pivot towards meeting the escalating demands of generative AI technology, poised to redefine the landscape of AI capabilities and infrastructure/

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