Microsoft and OpenAI are collaborating on the development of an ambitious project called “Stargate,” an artificial intelligence supercomputer that could cost up to $100 billion. The supercomputer, part of a series of supercomputers planned for construction over the next six years, aims to address the growing demand for AI capabilities. Stargate is expected to be the largest in the series and is scheduled for completion by 2028.
The project’s cost estimate was reported by The Information, citing sources familiar with the matter. Microsoft is likely to finance the project, which includes acquiring AI chips, a significant portion of the total cost. The current AI development process faces a bottleneck due to a shortage of graphics processing units (GPUs), primarily manufactured by Nvidia, which has led to skyrocketing demand and increased chip prices.
To challenge Nvidia’s dominance in the AI hardware market, a consortium of technology companies including Intel, Qualcomm, Google Cloud, Arm, and Samsung has formed the “United Acceleration Foundation.” This collaborative effort aims to establish an open standard accelerator programming model, offering an alternative to Nvidia’s software and hardware solutions.
