SoftBank and Open AI's $500 Billion AI Project Struggles To Get Off Ground

The $500 billion Stargate AI project announced by SoftBank and OpenAI at the White House six months ago has 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.

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