Reports from The Information indicate that Microsoft and OpenAI have teamed up for a massive AI data center project that is estimated to cost over $100 billion. The project, which is said to consist of five phases, involves the creation of an AI supercomputer known as Stargate.
As per the sources, Microsoft and OpenAI are currently progressing through the third phase of the project, although the specifics of this phase are not yet clear. The subsequent phase is expected to focus on building an AI supercomputer that is projected to be up and running by 2026. Following this, there will be a fifth phase dedicated to the development of a second AI supercomputer, also named Stargate, with an anticipated completion date of 2028.
During these latter two phases, it will be crucial for companies to invest in high-performance AI chips. The team at The Information suggests that the total cost of the project might surpass $115 billion, which is significantly more than what Microsoft spent on servers, infrastructure, and related expenses last year.
Microsoft's substantial investments in OpenAI, totaling a billion dollars in 2019 and a reported 10 billion dollars in 2023, demonstrate the company's commitment to advancing AI research. Additionally, it was revealed last year that Microsoft had allocated hundreds of millions of dollars towards the creation of a cutting-edge supercomputer for OpenAI.
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