Open AI’s massive Project Stargate is already struggling, may be scaled back

• Project Stargate could be targeting a smaller Ohio data center as its first site
• Oracle CEO Safra Catz says the project is not even formed yet
• OpenAI and SoftBank disagree over some things

OpenAI may have already significantly scaled back its multi-billion dollar Project Stargate initaitive, with no data center deals completed under the project in the six months it has been live.

Announced in January 2025 as a $500 billion effort to “[build] new AI infrastructure for OpenAI in the United States,” people familiar with the matter say Project Stargate is now targeting a smaller data center in Ohio by the end of the year, marking a slowdown compared with early plans.

Despite delayed progress, OpenAI CEO Sam Altman and SoftBank CEO Masayoshi Son have both stated that the partnership remains strong and active.

Project Stargate could be experiencing delays

According to new Wall Street Journal reporting though, OpenAI and SoftBank have disagreed over data center locations and the use of SB Energy sites (a SoftBank-backed energy firm). OpenAI has also made its own progress separate from the Project, including striking up a $30 billion deal with Oracle for 4.5 gigawatts of capacity.

In January, OpenAI said: “The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements.”

Speaking on an investor call last month, Oracle CEO Safra Catz countered Altman’s assertion: “Stargate is not formed yet.”

Although many of the industry’s key players, including Arm, Microsoft, Nvidia, Oracle and OpenAI, are partnered with the project, Stargate is still presented with challenges including bringing down costs and sourcing land, AI chips and energy.

Dubbed the largest investment of its kind, the $500 billion Stargate Project was followed by further announcements designed to strengthen the US’ position as a global leader in tech and AI, including $500 billion from Apple geared towards manufacturing and training, and a further $500 billion from Nvidia to expand US AI infrastructure.

Like Stargate, those are long-term four-year projects, and it’s unclear how much progress has been made and whether any regulatory, financial or other struggles lay ahead.

TechRadar Pro has asked OpenAI for more information.

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