• Source:Reuters
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Windows maker Microsoft and AI research company OpenAI are reportedly planning a data center project, the cost of which may touch the $100 billion mark. According to The Information, the setup may include an AI supercomputer, which may be termed "Stargate" and debut in 2028. The news comes amid the rise of AI technologies, which has led to a sharp uptick in the demand for data centers to handle advanced processing.

The report, citing sources familiar with the proposal, noted the Redmond-headquartered tech giant may finance this project, which could be among the biggest data centers that exist and be 100X more costly. Moreover, the proposed supercomputer will be the biggest iteration in the series, which the companies are reportedly planning for the next six years.

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The speculated cost of this effort may reach $100 billion, according to the source who reportedly spoke to OpenAI CEO Sam Altman and accessed Microsoft's estimates. Stargate will likely be a part of the fifth and last phase of the project. The fourth phase supercomputer could materialise in 2026. Both companies are reportedly sailing in the third phase of the plan. The significant cost involves buying AI chips for the upcoming phases, as per The Information.

Buying powerful AI chips has transformed into an expensive affair in the recent past. For instance, as per a CNBC report, citing Nvidia CEO Jensen Huang, the new 'Blackwell' B200 AI chip sits in the sub-$30,000 to $40,000 price bracket. Microsoft had earlier announced custom computing chips in November 2023. These chips will be designed to work with chipsets from other suppliers.

Also Read: OpenAI Is Considering Making Its Own Chips Over Scarcity Of GPUs: Report

"We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability," a Microsoft spokesperson told Reuters. However, the spokesperson did not share anything about the Stargate supercomputer. The expenses for this plan may surpass $115 billion, which is more than 3 times the expenditure of Microsoft on capital spending such as servers, buildings and other equipment in 2023.

With inputs from Reuters 

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