SoftBank and OpenAI's $500B Stargate AI project stalls, scaled back

SoftBank and OpenAI face setbacks as $500B Stargate plan stalls OpenAI and SoftBank’s ambitious $500 billion Stargate AI infrastructure project has stalled six months after its White House unveiling, with no completed data center deals. • The partners have dramatically scaled back their immediate goals from investing $100 billion immediately to building just one small data center in Ohio by year’s end. • Internal disagreements between SoftBank and OpenAI over crucial partnership terms, particularly site selection, have prevented meaningful progress on the joint venture. • OpenAI has moved ahead independently, striking a massive $30 billion annual deal with Oracle for cloud computing capacity, bringing it close to meeting expansion targets without the Stargate partnership. • The stalled project represents a significant setback for what was promised to be a transformative initiative creating over 100,000 jobs and positioning the U.S. as a leader in the global AI race against China. Why it matters The collapse of this high-profile public-private partnership undermines U.S. AI infrastructure ambitions and highlights execution challenges in massive tech initiatives, potentially impacting America’s competitive position against China in the AI race. Credit perplexity