SoftBank and OpenAI’s ambitious $500 billion AI data center project, initiated in January, has been stalled for six months due to disagreements over key elements like location and structure. The collaboration is now scaling down, focusing on establishing a smaller data center in Ohio by year-end. The Stargate project, intended to create over 100,000 jobs, initially involved a $100 billion immediate investment plan. However, internal conflicts between leaders Masayoshi Son and Sam Altman led to revised plans. Despite these challenges, SoftBank has secured alternative funding of $3 billion from Mizuho Bank. Additionally, OpenAI independently signed a $30 billion infrastructure deal with Oracle and is collaborating on capacities that could reach close to 5GW. Oracle is also moving forward with a new data center in Texas. The partnership aims to reshape AI computational infrastructure amid intensified competition against China, reinforcing the need for rapid deployment of advanced data centers across various U.S. states.
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