Microsoft and OpenAI have announced a groundbreaking partnership to develop what is set to become one of the world’s most expensive data center complexes, with an estimated cost of $100 billion. The ambitious project will also house an AI supercomputer named Stargate, according to media reports.
The Information reported that Microsoft is likely to finance the project, which is expected to be 100 times more costly than some of the largest existing data centers. Sources familiar with private conversations about the proposal revealed these details.
The proposed U.S.-based supercomputer will be the largest in a series of projects planned by the two companies over the next six years, the report added. The tentative cost of $100 billion was attributed to sources who discussed the project with Altman and had access to Microsoft’s initial cost estimates.
The joint venture between Microsoft and OpenAI represents a significant investment, costing 100 times more than current large data centers. The complex is expected to house “millions of GPUs,” according to sources cited by the outlet.
Additionally, OpenAI is anticipated to release its next major upgrade by early next year, as stated in the report.
Microsoft is reportedly also developing a smaller fourth-phase supercomputer for OpenAI, scheduled for launch in 2026. The companies are currently in the third phase of their five-phase plan, with the remaining phases focused on acquiring the AI chips required for the projects.
Frank Shaw, a Microsoft spokesperson, emphasized the company’s commitment to innovation in infrastructure needed to advance AI capabilities. Shaw’s statement to The Information highlighted Microsoft’s continuous efforts to push the frontier of AI capability.
The comprehensive project is expected to cost Microsoft a total of $115 billion, exceeding three times the amount spent on capital expenditures for servers, buildings, and other equipment last year, according to the report.
