Microsoft and OpenAI Planning $100 Billion 'Stargate' AI Supercomputer
Microsoft and OpenAI, according to Business Insider, are embarking on a bold project to create a supercomputer named "Stargate," with an estimated cost reaching $100 billion. This ambitious plan is part of a five-phase strategy, with Stargate being the fifth phase, targeted for launch by 2028.

The planned U.S.-based data center will house millions of specialized AI chips to accelerate the development of OpenAI's artificial intelligence models. The companies aim to lay the foundation for a large-scale infrastructure, intending to realize it over a multi-year period.
The project will likely be financed by Microsoft, with costs potentially exceeding 100 times that of some of the largest current data centers. Its operation will require gigawatts of power, equivalent to the consumption of several large data centers operating today. A significant portion of the project's cost will go towards procuring chips and establishing a stable power supply.
The partnership has previously faced legal scrutiny from regulators in the EU and the UK. Additionally, Elon Musk, a co-founder of OpenAI, has sued the company over its close ties with Microsoft. Despite these challenges, the project reflects the companies' long-term vision for artificial intelligence development. Sam Altman, CEO of OpenAI, has previously expressed concerns about the availability of chips suitable for AI development.
Currently, a smaller-scale supercomputer project, dubbed "Phase 4," is also underway, expected to be completed by 2026 at a cost of $10 billion. Stargate may only receive the green light if OpenAI can demonstrate spectacular progress in its AI capabilities.
The demand for AI chips has surged significantly, with Nvidia dominating the market. Consequently, OpenAI reportedly seeks to establish an alternative, globalized chip manufacturing network. Microsoft has also developed its own accelerator, the Azure Maia, and is considering alternative energy sources, including nuclear power, for the project.
The exact location for Stargate has not yet been determined; possibilities include housing it within one giant data center or distributing it across a network of smaller facilities. The project is still in the planning phase, with numerous technological decisions (such as chip selection and networking solutions) yet to be finalized.