Stargate: The $100 Billion AI Supercomputer by Microsoft and OpenAI

In an ambitious endeavor to push the boundaries of artificial intelligence (AI), tech giants Microsoft and OpenAI have reportedly embarked on a project to construct a supercomputer of unprecedented scale. Codenamed “Stargate”, this US-based supercomputer is projected to cost up to a staggering $100 billion, according to The Information.

The Vision of Stargate

Stargate is not just a standalone project but forms the nucleus of a comprehensive five-phase plan that Microsoft and OpenAI have envisioned for the next six years. This plan involves a series of supercomputer installations, with Stargate being the centerpiece. Insiders privy to the project have hinted that Stargate could be operational as early as 2028.


A spokesperson for Microsoft has confirmed their commitment to pioneering infrastructure innovations that will continue to advance the frontier of AI capability. This statement aligns with the ambitious vision that Stargate represents.

Funding the Future of AI

  • Microsoft’s Investment in OpenAI: Microsoft has made a significant financial commitment to OpenAI, exceeding $13 billion. This substantial investment underscores Microsoft’s belief in OpenAI’s potential and its strategic importance in the future of AI. The funding is used to support various projects and initiatives at OpenAI, including the development and operation of advanced AI systems.
  • Stargate Project Financing: The Stargate project, a groundbreaking initiative to build a supercomputer of unprecedented scale, is also expected to be primarily financed by Microsoft. Given the projected cost of up to $100 billion, this represents a massive investment in the future of AI technology. It demonstrates Microsoft’s commitment to pushing the boundaries of what is possible in AI and supercomputing.
  • OpenAI’s Use of Microsoft’s Infrastructure: OpenAI is not just a recipient of Microsoft’s financial investment. It also leverages Microsoft’s extensive data center infrastructure to power its AI systems. One such system is ChatGPT, a generative AI system. By using Microsoft’s data centers, OpenAI can access high levels of computing power necessary for sophisticated AI computations.
  • Exclusive Rights to Resell OpenAI’s Technology: In addition to providing funding and infrastructure, Microsoft also holds exclusive rights to resell OpenAI’s technology. This means that Microsoft can offer OpenAI’s advanced AI capabilities as part of its own product offerings to its customers. This arrangement further strengthens the partnership between Microsoft and OpenAI, creating a symbiotic relationship that benefits both entities.

Stargate: A Quantum Leap in Computing Power

It is expected to be a game-changer in the realm of supercomputing. It is projected to be 100 times more expensive than the largest data centers currently in operation. More importantly, it could potentially surpass the computing power that Microsoft currently provides to OpenAI from its data center. To achieve this, it would require several gigawatts of power, as reported by The Information.

Challenges on the Horizon

The ambitious scale of Stargate also brings with it significant challenges. The procurement of the necessary server chips could prove to be a hurdle, contributing to the high cost of the project. Additionally, securing sufficient energy sources to power Stargate could pose another challenge. The companies are reportedly considering alternative power sources, including nuclear energy, to meet these demands.

Location of the Supercomputer

The exact location of Stargate remains uncertain. Whether it will be housed in a single data center or distributed across multiple nearby centers is yet to be determined.

As we look forward to the next generation of AI advancements, projects like Stargate represent the bold steps that industry leaders like Microsoft and OpenAI are taking. Despite the challenges, the potential benefits of such a supercomputer could be transformative, ushering in a new era of AI capabilities.