According to the Wall Street Journal, the “Stargate” project initiated by OpenAI and SoftBank to build data centers in the United States has made almost no progress in over six months. Although up to $500 billion in investment was planned over four years for the project’s development, no facilities have yet been constructed.
Serious disagreements within the project
Sources cited by WSJ reveal that OpenAI and SoftBank have encountered significant disagreements on key issues. The two parties have even failed to agree on where the data centers should be built. As a result, the project has not progressed as quickly as planned.
Project launch and initial announcements
The “Stargate” project was announced in January 2025 by former President Donald Trump. The event was attended by OpenAI CEO Sam Altman, Oracle co-founder Larry Ellison, and SoftBank CEO Masayoshi Son. Initially, the plan was to build data centers in Texas, where OpenAI intended to train new AI models. At the time, Trump promised support and necessary permits for the project’s success.
Current status and future plans
However, according to WSJ sources, the project’s goals have been scaled down, with plans now to build a small data center in Ohio by the end of 2025. The project’s earlier ambitions and investment plans have been significantly reduced.
Official statements
Project leaders publicly state that work is progressing “rapidly and at a hyper-scale.” Nevertheless, WSJ sources note that OpenAI recently signed a separate agreement with Oracle to build data centers without SoftBank’s involvement, committing to pay $30 billion annually. Financial Times referred to this deal as an “expansion” of the Stargate project.
The difficulties and disagreements between OpenAI and SoftBank have led to the Stargate project’s slower-than-expected development. The future of the project and when crucial steps for expanding the AI infrastructure in the U.S. will be taken remain uncertain.
