Microsoft and OpenAI Announce $100 Billion Investment in New AI Supercomputer Project

Microsoft and OpenAI plan to invest over $100 billion in a new data center project, Stargate, launching in 2028. It will feature an AI-powered supercomputer to support their high demand for chips and reduce reliance on NVIDIA.

Stargate aims to facilitate faster AI development for Microsoft and OpenAI as demand for GPUs continues rising with the growth of AI.

NVIDIA is currently the world's most profitable semiconductor chip brand for AI chips, but may not be able to meet future demand as more companies adopt AI.

Microsoft is also working on a smaller supercomputer specifically for OpenAI, expected to ship in 2026.

Reaching the required computing power for advanced AI will demand more electricity than currently available, presenting an infrastructure challenge.