Microsoft and OpenAI plan to build a data center worth more than $100 billion

Microsoft and OpenAI are joining forces to create a data center project that will cost an estimated $115 billion. It will include an artificial intelligence-based supercomputer called Stargate.

Tech Mar 31, 2024 0 156 Add to Reading List

Microsoft and OpenAI plan to build a data center worth more than $100 billion

Microsoft and OpenAI are planning to build a shared data center that will house the Stargate supercomputer, powered by artificial intelligence. Project costs are estimated to be 100 times the cost of existing data centers.

As part of their collaboration, Microsoft and OpenAI have divided the development of supercomputers into five phases, the last of which will be Stargate. This will be the largest project in a series that the companies plan to implement over the next six years.

Microsoft and OpenAI are currently in the middle of phase three of the plan. Most of the costs for the next two stages are related to the acquisition of the necessary artificial intelligence chips. According to available information, Microsoft is currently working on a fourth, smaller supercomputer for OpenAI, scheduled to launch in 2026.

It's important to note that Stargate will be designed to work with chips from a variety of manufacturers. The data center is expected to be up and running by 2028.

The cost of implementing the plan could exceed $115 billion. That's three times what Microsoft will spend on servers, buildings and other equipment in 2023.