The ambitious $500 billion "Stargate" artificial intelligence initiative, initially launched by SoftBank and OpenAI, is facing considerable setbacks, according to recent updates. Despite its high-profile introduction at the White House six months ago, the project has not yet finalized any agreements for data center construction. The revised, more attainable objective is now to establish just one smaller data center by the end of the year, potentially located in Ohio. Disagreements between SoftBank and OpenAI over pivotal terms, such as site locations, have hindered progress.
In the meantime, OpenAI has chosen to proceed independently, forming an agreement with Oracle where it will invest over $30 billion annually. Additionally, OpenAI has secured a smaller-scale deal with CoreWeave (CRWV, Financial), further advancing its data capabilities. These developments indicate a shift in strategy as OpenAI navigates its path forward in the AI landscape.
