Stargate Project Shifts Focus to Smaller-Scale Data Center Launch Before Year-End, Report Says

The Stargate project, led by OpenAI, SoftBank, and Oracle, now plans a smaller data center by year-end amid strategic and partnership challenges.

Stargate Project Shifts Focus to Smaller-Scale Data Center Launch Before Year-End, Report Says

The ambitious Stargate project, a multibillion-dollar collaboration between OpenAI (developer of ChatGPT), SoftBank, and Oracle—was initially unveiled with the objective of boosting the United States' artificial intelligence (AI) infrastructure. But according to a recent Wall Street Journal report, the project's current focus has changed to constructing a smaller data center by the end of the year, most likely in Ohio.

Initially presented as a $500 billion mega-initiative, the Stargate project was supposed to create over 100,000 jobs in the US.  President Donald Trump, who hosted top tech CEOs at the White House in January, described it as a vital milestone in the United States' efforts to compete with China in the global AI race.

Despite its clear vision, the project has encountered internal conflicts.  OpenAI and SoftBank, the two main corporations leading the project, apparently clashed on important matters such as data centre sites.  However, both companies claimed that they are urgently analysing potential locations and would continue to grow the initiative in multiple states across the United States.

Stargate backers committed $100 billion for initial deployment, with the remaining expenditure spread over four years.  Oracle Chairman Larry Ellison stated that the first data centre under this project is already being built in Texas.

President Trump has also declared a national energy emergency, hoping to reduce regulatory barriers to energy projects such as oil drilling, coal mining, and nuclear power—moves that might assist meet the huge energy demands of future AI infrastructure. While Stargate is currently scaled down, it remains a significant step forward in the United States' long-term AI development goal.

Information referenced in this article is from Reuters