Microsoft and OpenAI's $100 billion data center ambition

Microsoft and OpenAI plan to build a data center worth 100 billion USD, including the Stargate supercomputer specializing in serving AI.

The Information on March 29 quoted sources that Microsoft plans to budget for a project worth 100 billion USD, many times higher than current large data centers. The Stargate system, part of the project, will be the largest supercomputer in a series of devices expected to be built by Microsoft and OpenAI over the next six years.

Inside a data center. Photo: Pixar

Microsoft and OpenAI are dividing the supercomputers in the project into five phases. The two companies are in the third phase, while Stargate will be deployed in the final phase. Most of the costs at this stage are spent on purchasing AI chips as required. The project is also designed to use chips from many different suppliers.

The total project cost could exceed $115 billion, three times the Microsoft budget for the company's server systems, infrastructure and equipment in 2023.

"We are always planning for next-generation infrastructure to serve our efforts to push the boundaries of AI capabilities," a Microsoft spokesperson said, but did not comment directly on the surrounding information. Stargate.

OpenAI has not yet commented.

The rapid popularity of generative AI has led to a growing demand for supercomputer systems dedicated to artificial intelligence, capable of taking on more complex tasks than traditional data centers. AI chips are also sold at high prices, with Nvidia's latest B200 Blackwell series going for $30,000-40,000 per chip.