Report: Microsoft, OpenAI plan $100 Billion data centre with 'Stargate' AI Supercomputer

Microsoft and OpenAI are working on plans for a data center project that could cost as much as $100 billion and include an artificial intelligence supercomputer called "Stargate" set to launch in 2028, The Information reported on Friday.

The Information attributed the tentative cost of $100 billion to a person who spoke to Altman about it and a person who has viewed some of Microsoft's initial cost estimates. It did not identify those sources.

Altman and Microsoft have spread the supercomputers across five phases, with Stargate as the fifth phase. Microsoft is working on a smaller, fourth-phase supercomputer for OpenAI to be launched around 2026, according to the report.

Microsoft and OpenAI are in the middle of the third phase of the five-phase plan, with a significant portion of the cost for the next two phases involving acquiring the needed AI chips, the report said.

AI chips are often sold at high prices. Chip company Nvidia CEO Jensen Huang told  earlier in March that the latest "Blackwell" B200 artificial intelligence chip will be priced between $30,000 and $40,000.

Microsoft had also announced a duo of custom-designed computing chips in November last year.

The report said the new project would be designed to work with chips from different suppliers.