Microsoft and OpenAI Reportedly Working on $100 Billion Data Center Project

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

The report said that Microsoft would likely finance the project, which is expected to be 100 times more costly than some of the biggest existing data centers.

The proposed U.S.-based supercomputer would be the biggest in a series the companies are looking to build over the next six years, the report added.

Sam 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.

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.

Expenses for the plan could exceed $115 billion, more than triple Microsoft's expenditure last year on capital spending for servers, buildings and other equipment, the report stated.