Stargate’s Struggles: OpenAI and SoftBank’s Disagreements
Stargate, a monumental $500 billion AI infrastructure initiative launched by former President Trump, is facing challenges due to discord between primary backers OpenAI and SoftBank. Originally designed to position the U.S. as a leader in AI, the project has devolved into a duopoly, with both companies now significantly reducing investment targets. Initially promising $100 billion, they now aim to construct only a small data center in Ohio by 2025.
Despite the setbacks, OpenAI is advancing independently, securing a substantial 4.5GW data center deal with Oracle, which includes $30 billion in payments over three years. OpenAI has also made another significant arrangement with CoreWeave, showcasing its ability to pursue growth without SoftBank’s involvement. While the two companies publicly maintain commitment to building 10GW of capacity, actual progress remains uncertain, as Stargate’s potential continues to hang in the balance.
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