Stargate, a $500 billion AI data center venture involving Softbank and OpenAI, appears to have been stalled for six months following its high-profile launch at the White House back in January.
The project intended to establish massive AI-focused data centers across the US, promising to create over 100,000 jobs and rapidly expand America's AI computing capacity.
According to a Wall Street Journal report, the two companies disagree on key project conditions, including the location and structure of the data centers.
The WSJ reported that Stargate’s ambitious plans to invest $100 billion immediately have been scaled back to building a single, smaller data center, likely in Ohio, by the year-end.
The publication also noted concerns about SoftBank’s financial health risks due to the large debt load, which could trigger a credit rating reassessment, especially since the AI industry has yet to prove profitability.
Meanwhile, OpenAI is advancing its AI efforts independently, including a $30 billion annual cloud computing deal with Oracle Corp (NYSE:ORCL, ETR:ORC). Oracle is providing infrastructure, including data centers with Nvidia GB200 chips, in states including Texas and potential sites such as Michigan, Wisconsin, and Wyoming.