Microsoft and OpenAI are collaborating on an ambitious project to establish a new cutting-edge data center to accommodate the escalating demand for artificial intelligence (AI) capabilities. 

According to The Information, this endeavor, which includes an AI supercomputer called "Stargate," is projected to debut in 2028 and could cost up to $100 billion.

Microsoft and OpenAI's Proposed Data Center for AI Supercomputer

According to sources familiar with the matter, Microsoft will likely spearhead the financing of this undertaking. The proposed data center is envisioned to surpass the scale and scope of even the largest existing data centers by a significant margin.

The planned supercomputer, slated to be based in the United States, forms part of a series of ambitious projects that Microsoft and OpenAI are poised to undertake over the next six years with an estimated cost of $100 billion, according to the report.

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Supercomputers of Microsoft and OpenAI

While the specifics of the project's financing and implementation remain undisclosed, sources told The Information that Microsoft and OpenAI have stretched out the supercomputers across five phases, with Stargate as the fifth phase. 

The report said that Microsoft is working on a fourth-phase smaller supercomputer for OpenAI to be unveiled sometime in 2026.

According to the report, Microsoft and OpenAI are now in the middle of the third phase of the five-phase plan, with a significant part of the cost for the next two phases involving getting the necessary AI chips.

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