OpenAI and SoftBank Pull Back on Ambitious $500 Billion Stargate Project Amid Delays in Securing Data Center Deals

OpenAI and SoftBank have pulled back on their ambitious $500 billion Stargate project, citing delays in securing major data center deals. The companies are now targeting a single data center in Ohio by year-end, with SoftBank's Masayoshi Son and OpenAI's Sam Altman reportedly disagreeing on key aspects of the deal. Oracle is leasing 4.5 gigawatts of data center capacity to OpenAI as part of the project.

OpenAI and SoftBank have scaled back their ambitious $500 billion Stargate project, citing delays in securing major data center deals. The companies are now targeting a single data center in Ohio by the end of the year, according to recent reports. The shift in plans comes amidst disagreements between SoftBank's Masayoshi Son and OpenAI's Sam Altman over key aspects of the deal, including site selection and energy suppliers [2].

The Stargate Project, originally announced by President Trump in January, aimed to build large-scale AI-focused data centers across the U.S. However, the partnership between OpenAI and SoftBank has been strained due to these disagreements [2]. Despite the setback, OpenAI has secured significant funding commitments for the Abilene data center in Texas. The project has secured $11.6 billion in funding, expanding the data center to eight buildings and bringing the total funding to $15 billion [1].

OpenAI has also struck smaller deals with other companies. For instance, OpenAI plans to rent 4.5 gigawatts of data center capacity from Oracle as part of the Stargate Project. Additionally, OpenAI has partnered with CoreWeave for a smaller data center deal [2]. The new partnerships, including those with Microsoft, Nvidia, and Oracle, are expected to provide OpenAI with the necessary resources to build out its AI infrastructure [3].

The impact of the partnership change remains to be seen. While the new partners have the resources to support the project's ambitious goals, the lack of SoftBank's involvement could limit the project's potential. SoftBank's vast resources and influence could have been beneficial in securing additional funding and political support [3].

Oracle, a key partner in the Stargate Project, is investing heavily in AI infrastructure. The company is investing $1 billion in the Netherlands to expand its AI and sovereign cloud capabilities, targeting key Dutch industries and supporting small businesses and tech startups [4]. Oracle's investments in Germany and the Netherlands are part of a broader strategy to meet rising demand for sovereign AI and data services across Europe.

The future of the Stargate Project is uncertain, but the shift in partnerships indicates OpenAI's commitment to moving forward with its ambitious plans. The project's success will depend on the ability of the new partners to provide the necessary resources and support.

References:
[1] https://www.pymnts.com/news/2025/oracle-to-buy-40-billion-worth-of-nvidia-chips-for-first-stargate-data-center/
[2] https://seekingalpha.com/news/4469666-stargate-project-moves-ahead-as-openai-strikes-deals-sans-softbank-report
[3] https://m.economictimes.com/tech/artificial-intelligence/masayoshi-son-and-sam-altman-see-no-end-to-ai-demand-and-scaling/articleshow/122565449.cms
[4] https://www.rcrwireless.com/20250716/ai-infrastructure/oracle-ai-europe