The much-discussed Stargate AI infrastructure project will reportedly serve only one customer: OpenAI. Sources say funding for the massive project, which could cost up to $500 billion, hasn't been secured.
Inside sources told the Financial Times that the Stargate AI infrastructure project will provide computing power exclusively to OpenAI. The project, announced earlier this week by OpenAI, SoftBank, Oracle, and MGX, aims to invest up to $500 billion in technical infrastructure over the next four years.
Despite the high-profile announcement, sources say key details remain up in the air. The project won't receive any government backing, and unlike what many initially thought, it won't function as a general-purpose data center. Instead, it's being designed specifically for OpenAI's computing needs.
This revelation puts a different spin on the project's initial presentation. When announcing Stargate, OpenAI claimed it would "secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world."
Now that we know Stargate will serve only OpenAI, these claims seem less straightforward. Many media outlets reported on it as an official U.S. government initiative or "Trump's AI offensive" meant to boost the entire American AI industry. Instead, it appears to be a private computing project designed exclusively for OpenAI.
Stargate's exclusive nature also adds an unexpected twist to Altman's recent public spat with Elon Musk. When Musk cast doubt on the project by tweeting "They don't actually have the money," Altman shot back: "I realize what is great for the country isn't always what's optimal for your companies." He then lectured Musk about putting American interests ahead of business concerns.
But Stargate's OpenAI-only status makes Altman's stance harder to defend. While he criticized Musk for supposedly putting business before country, Altman appears to be steering billions in computing power exclusively to his own company. Both tech leaders seem convinced their companies are crucial to America's AI future - they just disagree about whose vision deserves the resources.
The exchange also stands out given Musk's close relationship with President Trump, who helped unveil the Stargate project alongside Altman and other partners. When reporters asked Trump about Musk's criticism, he dismissed it with characteristic bluntness: "He hates one of the people in the deals […] but I have certain hatreds of people too" - seemingly referring to Altman, who is already dealing with a lawsuit from Musk against OpenAI.
Setting up a Stargate in Texas
The project splits responsibilities between two main players. OpenAI will lead the operational unit handling data center construction and operations, while SoftBank will head up fundraising efforts. Both SoftBank and OpenAI plan to invest more than $15 billion each ($19 billion according to The Information), with additional funding expected to come from a mix of existing investor equity and loans.
Work has already begun on Stargate's first facility. In Abilene, Texas, data center startup Crusoe started construction on an Oracle facility last June, backed by $3.4 billion from Blue Owl. Oracle, which joined the project alongside Abu Dhabi's AI fund MGX, plans to invest about $7 billion in chips for this site, according to the Financial Times.
Microsoft charts its own course
OpenAI plans to maintain its relationship with Microsoft as it builds out Stargate. According to Altman, the partnership with Microsoft is "very important [...] for a long time to come," but OpenAI just "needs moar [in the original] compute."
In a CNBC interview, Microsoft CEO Satya Nadella confirmed their partnership remains relevant, explaining that "Sam [Altman] wants to continue with scaling laws to build out more compute in order for him to train more models."
He also pointed out that Microsoft still has first rights to provide computing power to OpenAI. "If we meet those needs, then we clear it. If not, he can go to these other providers." Microsoft also has exclusive access to OpenAI's models until at least 2030.
Meanwhile, Microsoft is making its own moves. The company announced an $80 billion investment in global AI infrastructure this year, completely separate from the Stargate project. When reporters asked about Musk's doubts over Stargate's funding, Nadella had a pointed response: "Look, all I know is, I’m good for my $80 billion."
