SoftBank and OpenAI Stalls 6 months on $500 Billion Stargate Dream

The high-profile Stargate Project – a $500 billion AI infrastructure initiative led by OpenAI, SoftBank, and Oracle is reportedly scaling back its immediate goals, now aiming to build a single data center in Ohio by year’s end, according to a report by The Wall Street Journal.

Launched with grand ambitions to reshape America’s artificial intelligence landscape and create over 100,000 jobs, Stargate is facing internal disputes between lead partners OpenAI and SoftBank. According to sources cited by the Journal, disagreements over key decisions such as site locations have slowed progress on the initiative.

Despite tensions, OpenAI and SoftBank released a joint statement to Reuters affirming that they are “moving with urgency on site assessments” and advancing multiple projects across several U.S. states. This suggests the project is still in motion, albeit with a more cautious and fragmented rollout.

Originally unveiled in January during a White House event hosted by U.S. President Donald Trump, the Stargate Project was heralded as a cornerstone of the administration’s effort to win the AI arms race against China. President Trump emphasized this priority further by declaring a national energy emergency on his first day back in office, clearing regulatory pathways for traditional energy expansion including oil, gas, coal, and nuclear—resources critical for powering data infrastructure at scale.

As per Bittmint’s review of official filings and public statements, equity backers had pledged $100 billion for initial deployment, with the remainder of the capital to be infused over four years. Oracle Chairman Larry Ellison had also previously confirmed that construction had begun on the first Stargate data center in Texas.

Now, with Ohio emerging as a likely site for a smaller facility by the end of 2025, the vision of a sweeping AI industrial complex appears tempered—at least in the short term.

This recalibration may reflect broader concerns about project governance, infrastructure readiness, and geopolitical volatility surrounding advanced AI deployment. For now, industry observers await further details from the joint venture’s stakeholders and their next moves across U.S. soil.