Unveiling the Impending $100 Billion ‘Stargate’ AI Data Center: Microsoft & OpenAI Forge Ahead

  • Microsoft and OpenAI are contemplating a colossal $100 billion supercomputer campus named ‘Stargate’ to advance AI models.
  • ‘Stargate’ is projected to launch in 2028 and expand over two years, potentially requiring five gigawatts of power.
  • Considerations include nuclear power sources and chip options such as Nvidia, AMD, or Microsoft’s AI chips.
  • Infrastructural enhancements entail denser racks and a shift from Nvidia’s InfiniBand cables to Ethernet.
  • Site location within the US and architectural design remain under deliberation.

Main AI News:

In a groundbreaking revelation, Microsoft and OpenAI are contemplating the establishment of a monumental $100 billion supercomputer campus, aptly named ‘Stargate,’ geared towards fostering the advancement of artificial intelligence paradigms. The anticipated project, as divulged by The Information, is still in its nascent stages but is slated for a prospective launch in 2028. Envisioned to burgeon over a span of two years, ‘Stargate’ looms large, potentially necessitating a staggering five gigawatts to fuel its operations at full capacity.

Given the colossal power requisites inherent in this ambitious undertaking, Microsoft and OpenAI have been delving into diverse avenues for energy procurement, with nuclear power emerging as a viable alternative. Notably, Amazon’s recent acquisition of a data center site in Pennsylvania adjacent to a nuclear power plant has spurred contemplation within Microsoft circles, as per insights provided by The Information.

Earlier this year, DCD unveiled an exclusive report shedding light on Microsoft’s strategic recruitment of Archie Manoharan as the Director of Nuclear Technologies and Erin Henderson as the Head of Nuclear Development Acceleration, signaling an intensified focus on Small Modular Reactors (SMRs). Moreover, OpenAI CEO Sam Altman’s endorsement of Oklo, a burgeoning nuclear reactor firm targeting data center applications, underscores the pivot towards nuclear energy solutions within the tech sphere.

The hardware configuration for ‘Stargate’ remains an area of deliberation, with the choice of chips yet to be finalized. Prospective options include forthcoming Nvidia GPUs, AMD GPUs, Microsoft’s proprietary AI chips, or potentially alternative solutions. Concurrently, Altman’s pursuit of capital for his chip venture adds another dimension to the technological landscape, augmented by OpenAI’s recruitment of a former Google TPU lead.

Furthermore, the infrastructural exigencies of ‘Stargate’ demand a paradigm shift, necessitating denser racks capable of accommodating higher heat loads than currently feasible within Microsoft’s infrastructure. In tandem, OpenAI is reportedly contemplating a transition from Nvidia’s proprietary InfiniBand cables to Ethernet cables, underscoring a concerted effort towards optimizing networking capabilities.

While discussions surrounding the ‘Stargate’ initiative have been ongoing since at least last summer, Microsoft grapples with pivotal decisions regarding the facility’s geographical location within the United States. Concurrently, deliberations persist regarding the architectural blueprint, with the prospect of a singular monolithic edifice versus dispersed sites on a unified campus remaining under scrutiny.

The fruition of ‘Stargate’ would mark the culmination of the fifth phase in the enduring collaboration between Microsoft and OpenAI, epitomizing a steadfast commitment to pushing the frontiers of AI innovation. Currently entrenched in its third phase, the alliance has hitherto spearheaded the development of expansive supercomputing infrastructure, pivotal in nurturing transformative AI models like ChatGPT and beyond.

Anticipating the advent of ‘Stargate,’ the consortium is poised to materialize Phase 4 with the construction of a supercomputer in Mount Pleasant, Wisconsin, slated to commence operations in 2026. Noteworthy is Microsoft’s recent green light for a $1 billion expansion at its extant campus, complemented by the acquisition of an additional 1,000 acres of contiguous land, fortifying the groundwork for future expansions.

Collectively, the envisaged endeavors encompassing ‘Stargate’ and its antecedents constitute a formidable investment tallying approximately $115 billion. Against the backdrop of Microsoft’s current annual expenditure of $50 billion on Azure data centers, chips, and networking infrastructure, these ambitious undertakings underscore a resolute commitment to technological innovation and AI prowess.


The proposed ‘Stargate’ initiative between Microsoft and OpenAI heralds a significant stride in AI development, with profound implications for the market. This ambitious venture underscores a pivotal shift towards leveraging nuclear energy and innovative chip solutions, amplifying competitiveness and propelling the industry towards unprecedented technological frontiers. Moreover, the infrastructural enhancements and strategic site selections underscore a concerted effort to optimize operational efficiency and foster sustained growth, cementing Microsoft and OpenAI’s dominance in the AI landscape while igniting a new era of technological innovation.