Stargate's $500 billion AI infrastructure project reportedly stalls over unresolved disputes between OpenAI, Oracle, and Softbank

The Stargate AI data center project worth $500 billion, announced by US President Donald Trump in January 2025, is reportedly running into serious trouble.

More than a year after the announcement, the joint venture between OpenAI, Oracle, and Softbank hasn't hired any staff and isn't actively developing any data centers, The Information reports, citing three people involved in the "shelved idea." The three partners have been arguing over responsibilities and how the collaboration should be structured, disagreements that were already surfacing last summer.

OpenAI then tried to build its own data centers but couldn't get financing. Lenders weren't willing to back billion-dollar projects from a company with an unproven business model and heavy losses. Only after hitting that wall did OpenAI go back to its Stargate partners Oracle and Softbank. This time around, though, the partnership is a two-way deal rather than a three-way consortium.

At the end of July, Oracle and OpenAI officially announced a deal for 4.5 gigawatts across multiple US locations. According to The Information, the two companies split part of the economic risk: if delays or cost overruns happen, both sides cover the extra costs, and both benefit from any savings.

For now, OpenAI is relying on cloud partnerships instead of building its own data centers. OpenAI CFO Sarah Friar said at the World Economic Forum in Davos that the company is deliberately working with partners to protect its balance sheet. All three companies declined to comment. OpenAI's 10-gigawatt deal with Nvidia, announced in September 2025, also won't move forward as originally communicated.

Delays are driving up costs and pushing OpenAI toward competitors

The Stargate delays have had real consequences. According to The Information, OpenAI fell short of its goal of locking down commitments for 10 GW of capacity over the next three years through SoftBank and Oracle by the end of last year. To cover its computing power needs, the company cut deals with Amazon Web Services, Google Cloud, chipmaker AMD, and chip startup Cerebras.

Despite the bumpy start, the Stargate data centers are finally starting to take shape. In October, ground was broken on a 1-gigawatt campus in Milam County, Texas. And OpenAI reportedly reached a compromise with Softbank: OpenAI will sign the long-term lease and control the facility's design, while Softbank's subsidiary Softbank Energy will develop and own the project.