(Reuters) -Microsoft and OpenAI are engaged on plans for an information middle undertaking that would value as a lot as $100 billion and embrace a man-made intelligence supercomputer referred to as “Stargate” set to launch in 2028, The Info reported on Friday.

OpenAI didn’t instantly reply to Reuters’ requests for remark.

Fast adoption of generative synthetic intelligence expertise has led to sky-rocketing demand for AI knowledge facilities able to dealing with extra superior duties than conventional knowledge facilities.

The Info reported that Microsoft (NASDAQ:) would seemingly finance the undertaking, which is predicted to be 100 instances extra expensive than among the greatest current knowledge facilities, citing individuals concerned in personal conversations concerning the proposal.

The proposed U.S.-based supercomputer could be the largest in a sequence the businesses wish to construct over the subsequent six years, the report added.

The Info attributed the tentative value of $100 billion to an individual who spoke to Altman about it and an individual who has seen a few of Microsoft’s preliminary value estimates. It didn’t determine these sources.

Altman and Microsoft have unfold the supercomputers throughout 5 phases, with Stargate because the fifth part. Microsoft is engaged on a smaller, fourth-phase supercomputer for OpenAI to be launched round 2026, based on the report.

Microsoft and OpenAI are in the course of the third part of the five-phase plan, with a good portion of the fee for the subsequent two phases involving buying the wanted AI chips, the report stated.

AI chips are sometimes offered at excessive costs. Chip firm Nvidia (NASDAQ:) CEO Jensen Huang instructed CNBC earlier in March that the most recent “Blackwell” B200 synthetic intelligence chip will probably be priced between $30,000 and $40,000.

Microsoft had additionally introduced a duo of custom-designed computing chips in November final 12 months.

The report stated the brand new undertaking could be designed to work with chips from completely different suppliers.

“We’re all the time planning for the subsequent technology of infrastructure improvements wanted to proceed pushing the frontier of AI functionality,” a Microsoft spokesperson stated in an emailed assertion to Reuters. The spokesperson didn’t remark immediately on the report concerning the deliberate launch of the Stargate supercomputer.

Bills for the plan may exceed $115 billion, greater than triple Microsoft’s expenditure final 12 months on capital spending for servers, buildings and different gear, the report acknowledged.