March 29 (Reuters) - Microsoft ( MSFT ) and OpenAI are
planning a data-center project that could cost as much as $100
billion and will include an artificial intelligence
supercomputer called "Stargate," according to a media report on
Friday.
The companies did not immediately respond to Reuters'
requests for comment.
The Information reported that Microsoft ( MSFT ) would likely be
responsible for financing the project, which would be 100 times
more costly than some of the biggest current data centers,
citing people involved in private conversations about the
proposal.
OpenAI's next major AI upgrade is expected to land by
early next year, the report said, adding that Microsoft ( MSFT )
executives are looking to launch Stargate as soon as 2028.
The proposed U.S.-based supercomputer would be the
biggest in a series of installations the companies are looking
to build over the next six years, the report added.
The Information attributed the tentative cost of $100
billion to a person who spoke to OpenAI CEO Sam Altman about it
and a person who has viewed some of Microsoft's ( MSFT ) initial cost
estimates. It did not identify those sources.
Altman and Microsoft ( MSFT ) employees have spread
supercomputers across five phases, with Stargate as the fifth
phase. Microsoft ( MSFT ) is working on a smaller, fourth-phase
supercomputer for OpenAI that it aims to launch around 2026,
according to the report.
Microsoft ( MSFT ) and OpenAI are in the middle of the third
phase of the five-phase plan, with much of the cost of the next
two phases involving procuring the AI chips that are needed, the
report said.
"We are always planning for the next generation of
infrastructure innovations needed to continue pushing the
frontier of AI capability," Frank Shaw, a Microsoft ( MSFT )
spokesperson, said in a statement to the publication.
The proposed efforts could cost in excess of $115
billion, more than three times what Microsoft ( MSFT ) spent last year on
capital expenditures for servers, buildings and other equipment,
the report stated.