Both Microsoft and OpenAI propose to collaborate to build a supercomputer called Stargate to power AI. This supercomputer could be 100 times more expensive than the largest data centers currently in operation.

This computer will use millions of specialized server chips and could cost up to $100 billion. It will take next five or six years to build and could be launched in 2028. There could be a series of separate installations. It will further the frontiers of AI.

Microsoft could fund Stargate. Microsoft has already committed $13 billion plus to OpenAI. OpenAI uses at present Microsoft data centers to power its ChatGPT. In return Microsoft gets to exclusively resell OpenAI’s technology to its own customers.

This supercomputer will require more computing power that what is currently supplied by Microsoft to OpenAI. At the same time, it will require several gigawatts of electric power, for which a nuclear energy option could be considered.

The project is expensive as it involves the acquisition of millions of specialized chips. Also, the cost of power makes it expensive.