By In a groundbreaking collaboration, tech giants Microsoft and OpenAI are reportedly teaming up for an ambitious data center project expected to surpass $100 billion in costs.
Sources cited in a report by The Information indicate that the partnership aims to develop a massive artificial intelligence (AI) supercomputer named “Stargate” by 2028, in response to the growing demand for AI data centers capable of handling increasingly complex tasks, particularly driven by advancements in generative AI technology.
Microsoft is expected to shoulder the majority of the financial burden for the venture, which exceeds existing data center operations by a factor of 100. The envisioned supercomputer, located in the United States, will be the centerpiece of a comprehensive six-year initiative consisting of five phases, with “Stargate” representing the pinnacle achievement.
As part of the initial phases, Microsoft is currently working on a smaller-scale supercomputer set for deployment by 2026, customized to meet OpenAI’s requirements. However, a significant financial challenge in later stages involves acquiring specialized AI chips, each priced between $30,000 and $40,000, according to Nvidia CEO Jensen Huang.
Despite Microsoft’s efforts to develop its own computing chips, the initiative is expected to integrate chips from various suppliers. The projected costs for the project exceed $115 billion, surpassing Microsoft’s previous annual investments in infrastructure development.
This strategic investment underscores the tech giant’s commitment to advancing AI innovation and infrastructure. Notably, at the recent World Government Summit in Dubai, OpenAI CEO Sam Altman discussed the upcoming GPT-5 model, highlighting its superiority over previous versions across various aspects.
Expected to represent a significant leap in AI capabilities, GPT-5 holds the potential to approach human-level intelligence and demonstrates proficiency in deciphering ancient languages, among other features. Set for a potential release in 2024, GPT-5 will incorporate advanced functionalities such as image generation via DALL-E and video synthesis via Sora, signaling a new era of AI advancement and exploration.
