SoftBank and Open AI's $500 Billion AI Project Struggles To Get Off Ground (msn.com)
(Tuesday July 22, 2025 @11:22AM (msmash)
from the reality-check dept.)
The [1]$500 billion Stargate AI project announced by SoftBank and OpenAI at the White House six months ago has [2]failed to complete a single data center deal and sharply scaled back its near-term plans. The venture, which originally pledged to invest $100 billion "immediately," now aims to build one small data center by year-end, likely in Ohio, according to WSJ. SoftBank and OpenAI have disagreed over crucial partnership terms, including site locations.
OpenAI has proceeded independently, signing a deal with Oracle worth more than $30 billion annually starting within three years. That agreement totals 4.5 gigawatts of capacity and would consume power equivalent to more than two Hoover Dams. Combined with a smaller CoreWeave deal, OpenAI has secured nearly as much data center capacity as Stargate promised for this year. SoftBank invested $30 billion in OpenAI earlier this year as part of the infrastructure partnership plans.
[1] https://yro.slashdot.org/story/25/01/21/225229/trump-to-announce-up-to-500-billion-in-ai-infrastructure-investment
[2] https://www.msn.com/en-us/money/companies/softbank-and-open-ai-s-500-billion-ai-project-struggles-to-get-off-ground/ar-AA1J1cYy
OpenAI has proceeded independently, signing a deal with Oracle worth more than $30 billion annually starting within three years. That agreement totals 4.5 gigawatts of capacity and would consume power equivalent to more than two Hoover Dams. Combined with a smaller CoreWeave deal, OpenAI has secured nearly as much data center capacity as Stargate promised for this year. SoftBank invested $30 billion in OpenAI earlier this year as part of the infrastructure partnership plans.
[1] https://yro.slashdot.org/story/25/01/21/225229/trump-to-announce-up-to-500-billion-in-ai-infrastructure-investment
[2] https://www.msn.com/en-us/money/companies/softbank-and-open-ai-s-500-billion-ai-project-struggles-to-get-off-ground/ar-AA1J1cYy