OpenAI’s $500 billion Stargate data center project faces severe challenges, including financing issues and stalled timelines. Originally heralded as a groundbreaking AI infrastructure initiative, the project has turned into a cautionary tale marked by unresolved disputes over control and ownership among key partners, including Oracle and SoftBank. Since its launch in January 2025, the venture has failed to hire staff or begin construction, with its capacity targets slashed from 10 gigawatts to approximately 7.5 GW. OpenAI explored building independent data centers but faced financing rejections. Consequently, the company bypassed the Stargate joint venture, striking bilateral deals worth nearly $600 billion with Oracle, Amazon, and others. Oracle, now deep in debt and facing stock plummets, may cut thousands of jobs while OpenAI revises its 2030 spending targets downward from $1.4 trillion to $600 billion. This interconnected financing scheme raises concerns about sustainability and could destabilize the entire project if any partner falters.
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