Remember the grand January announcement when Donald Trump, Sam Altman, and Masayoshi Son unveiled plans to invest $500 billion in AI infrastructure under the ambitious Stargate project? Fast forward six months, and not a single data center has been built, leaving the initiative mired in uncertainty.
Disarray Between OpenAI and SoftBank
The Wall Street Journal reports that OpenAI and SoftBank are locked in disputes, unable to agree even on data center locations. Meanwhile, Altman has sidestepped the impasse by securing a separate $30 billion annual deal with Oracle, supplemented by agreements with CoreWeave. Combined, these contracts provide OpenAI with computing power roughly equivalent to the initial phase of Stargate, effectively reducing reliance on the joint venture.
Brand Confusion and Corporate Tensions
Adding to the chaos, Altman is leveraging the Stargate brand for his Texas projects, despite the trademark belonging to SoftBank. During a recent investor call, Oracle’s chairman admitted candidly, “Stargate hasn’t even been established as a company yet.” This raises questions about the project’s coherence and ownership.
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A Pattern of Overambition?
The delays and infighting might not be coincidental. SoftBank’s track record with high-profile ventures, such as the infamous WeWork debacle, suggests a pattern of overpromising and underdelivering. The Stargate saga reflects more ambition than action, casting doubt on its ability to reshape AI infrastructure anytime soon.
