OpenAI, SoftBank Pull Back on $500B Stargate Project
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Stargate Project Narrows to One Site by End of Year
In January 2025, President Trump announced the Stargate project alongside OpenAI, Oracle (ORCL), and SoftBank, with a goal to boost U.S. AI infrastructure. The project began with a $100 billion investment and aims to grow to $500 billion over the next four years.
However, the companies are now targeting a more modest goal of building just a single data center in Ohio by the end of the year. According to sources familiar with the matter, SoftBank's Masayoshi Son and OpenAI's Sam Altman have disagreed on key aspects of the Stargate deal, including the location of the site.
The sluggish launch of Stargate is a setback for Son, who is eyeing a key spot in the AI world with his massive investments. Despite the slow start, Son remains optimistic about OpenAI and has reportedly expressed interest in increasing his investment in the company.
Meanwhile, OpenAI has reportedly agreed to lease around 4.5 gigawatts of data center capacity from Oracle in the U.S. as part of the Stargate project. As part of this, Oracle plans to build multiple data centers across the country, with potential sites in Texas, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania.
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