OpenAI and SoftBank Diverge on Stargate Project, Leaving AI Infrastructure Plans in Limbo

The Stargate project, a collaborative effort between OpenAI and SoftBank aimed at upgrading the artificial intelligence infrastructure in the United States, is making little headway.

According to the Wall Street Journal, since its launch in January, neither company has managed to finish construction or secure the necessary permits for a data center. The once widely publicized $100 billion investment has now been significantly reduced to a more modest goal: a small data center in Ohio, which is expected to be completed by the end of the year.

Originally, Stargate was touted as a massive infrastructure initiative with plans to establish data centers across the U.S. by 2029 with a budget of $500 billion, all to bolster the country’s ambitions in artificial intelligence. The project’s launch was celebrated at the White House with appearances from Donald Trump, OpenAI CEO Sam Altman, and SoftBank’s Masayoshi Son. Both OpenAI and SoftBank committed $18 billion each, and other partners like Oracle and UAE-based MGX were mentioned, but without specific investment commitments.

The Wall Street Journal reports that OpenAI and SoftBank have differing views on crucial issues, such as where to locate the data centers. One major point of contention is whether to use land controlled by SB Energy, an energy developer connected to SoftBank. Furthermore, there is still no binding agreement regarding the roles of Oracle or MGX.

Oracle CEO Safra Catz informed investors last month that Stargate is not yet fully developed, despite public statements from both companies claiming they were operating at “hyperscale speed.”

Altman appears to have a different perspective. OpenAI now refers to its data centers in Abilene and Denton, Texas, as part of Stargate. However, according to WSJ, SoftBank is not involved in these projects. In reality, OpenAI needs GPUs and is pushing forward with its own infrastructure plans.

Recently, OpenAI signed a substantial agreement with Oracle for 4.5 gigawatts of power for its data centers—roughly enough to power four million households in the U.S. Under this deal, OpenAI is set to pay Oracle more than $30 billion annually for three years.

An agreement has also been reached with CoreWeave. Collectively, these contracts provide OpenAI with nearly as much computing power as was expected from Stargate this year.

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For the original source, click [here](https://the-decoder.com/openai-pushes-ahead-with-stargate-as-softbank-remains-absent-from-data-center-development/).