OpenAI and Microsoft Make Plans for $100 Billion Data Center

OpenAI and Microsoft Make Plans for $100 Billion Data Center

OpenAI and Microsoft Make Plans , for $100 Billion Data Center.

According to The Information, the two companies are planning to build a data center that would house an AI supercomputer called "Stargate," Reuters reports.

According to The Information, the two companies are planning to build a data center that would house an AI supercomputer called "Stargate," Reuters reports.

The project, which could cost $100 billion or more, is reportedly set to launch in 2028.

The tentative cost is roughly 100 times more expensive than some of the biggest data centers that exist today.

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Demand for AI data centers has increased due to the rapid advancement of generative artificial intelligence technology, Reuters reports.

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This is because traditional data centers aren't as capable of handling the advanced tasks that AI requires.

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Several supercomputers would be built across five phases.

"Stargate" would be launched in the fifth phase, while a smaller supercomputer would be launched in the fourth phase, tentatively around 2026.

Microsoft and OpenAI are reportedly in the third phase currently.

We are always planning for the next generation of infrastructure innovations needed to continue pushing the frontier of AI capability, Microsoft spokesperson, to Reuters .

The cost for the next two phases largely revolves around acquiring expensive AI chips.

In March, Nvidia CEO Jensen Huang said that the newest "Blackwell" B200 AI chip will cost between $30,000 and $40,000