The $500 billion Stargate AI project by SoftBank and OpenAI has hit major setbacks just six months post-launch. The Wall Street Journal reports that the initiative has failed to secure any data center agreements due to internal disputes over site locations. Originally unveiled with great fanfare at the White House, the project aimed to bolster U.S. AI infrastructure with a fleet of advanced data centers. However, it has now significantly reduced its ambitions to just one small facility in Ohio. Meanwhile, OpenAI is independently pursuing massive data center deals, recently finalizing a $30 billion agreement with Oracle for 4.5 gigawatts of computing capacity. The confusion surrounding the Stargate brand, coupled with various unrelated projects bearing the name, highlights operational disarray. This stagnation presents an opportunity for competitors like Oracle and Amazon, indicating a shift in the AI infrastructure landscape as SoftBank’s and OpenAI’s ambitious goals falter.
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