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22 Jul, 2025
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Open AI's massive Project Stargate is already struggling, may be scaled back
@Source: techradar.com
Skip to main content Tech Radar Pro Tech Radar Gaming Tech Radar Pro TechRadar the business technology experts Search TechRadar View Profile België (Nederlands) Deutschland North America US (English) Australasia New Zealand Expert Insights Website builders Web hosting Best web hosting Best office chairs Best website builder Best antivirus Expert Insights Recommended reading OpenAI set to add Google Cloud services as it looks to meet computing capacity needs AWS joins Microsoft in pausing data center projects - is AI demand falling off? OpenAI to move to Google Cloud infrastructure to boost ChatGPT computing power OpenAI and Microsoft in talks to revise terms and renew partnership, FT reports Meta unveils new plans for multi-gigawatt datacenter clusters the size of Manhattan AI’s infrastructure problem isn’t tariffs, it’s unused capacity Oracle signs a mystery huge cloud contract - one which could net it $30bn in revenue Open AI's massive Project Stargate is already struggling, may be scaled back Craig Hale 22 July 2025 Project Stargate didn't hit the ground running When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: OpenAI) Project Stargate could be targeting a smaller Ohio data center as its first site Oracle CEO Safra Catz says the project is not even formed yet OpenAI and SoftBank disagree over some things OpenAI may have already significantly scaled back its multi-billion dollar Project Stargate initaitive, with no data center deals completed under the project in the six months it has been live. Announced in January 2025 as a $500 billion effort to "[build] new AI infrastructure for OpenAI in the United States," people familiar with the matter say Project Stargate is now targeting a smaller data center in Ohio by the end of the year, marking a slowdown compared with early plans. Despite delayed progress, OpenAI CEO Sam Altman and SoftBank CEO Masayoshi Son have both stated that the partnership remains strong and active. You may like OpenAI set to add Google Cloud services as it looks to meet computing capacity needs AWS joins Microsoft in pausing data center projects - is AI demand falling off? OpenAI to move to Google Cloud infrastructure to boost ChatGPT computing power Project Stargate could be experiencing delays According to new Wall Street Journal reporting though, OpenAI and SoftBank have disagreed over data center locations and the use of SB Energy sites (a SoftBank-backed energy firm). OpenAI has also made its own progress separate from the Project, including striking up a $30 billion deal with Oracle for 4.5 gigawatts of capacity. In January, OpenAI said: "The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements." Speaking on an investor call last month, Oracle CEO Safra Catz countered Altman's assertion: "Stargate is not formed yet." Although many of the industry's key players, including Arm, Microsoft, Nvidia, Oracle and OpenAI, are partnered with the project, Stargate is still presented with challenges including bringing down costs and sourcing land, AI chips and energy. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Dubbed the largest investment of its kind, the $500 billion Stargate Project was followed by further announcements designed to strengthen the US' position as a global leader in tech and AI, including $500 billion from Apple geared towards manufacturing and training, and a further $500 billion from Nvidia to expand US AI infrastructure. Like Stargate, those are long-term four-year projects, and it's unclear how much progress has been made and whether any regulatory, financial or other struggles lay ahead. TechRadar Pro has asked OpenAI for more information. You might also like These are the best AI tools and best AI writers Access powerful chips with the best cloud computing providers OpenAI is massively upping its Oracle cloud capacity to power Project Stargate - is this the mystery $30bn deal? With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value! You must confirm your public display name before commenting Please logout and then login again, you will then be prompted to enter your display name. OpenAI set to add Google Cloud services as it looks to meet computing capacity needs AWS joins Microsoft in pausing data center projects - is AI demand falling off? OpenAI to move to Google Cloud infrastructure to boost ChatGPT computing power OpenAI and Microsoft in talks to revise terms and renew partnership, FT reports Meta unveils new plans for multi-gigawatt datacenter clusters the size of Manhattan AI’s infrastructure problem isn’t tariffs, it’s unused capacity Latest in Pro AI in customer communication: the opportunities and risks SMBs can’t ignore Microsoft SharePoint server hack sees Chinese threat actor hit roughly 100 orgs - here’s what we know so far OpenAI signs wide-ranging deal with the UK government - with AI coming to more of our everyday lives Dell confirms data breach - but says hackers only stole "fake data" Kioxia unveils 246TB SSD behemoth — the LC 9 is the largest SSD ever launched and can store 52,000 DVD movies A chain reaction: inside the cyberattack that brought M&S to its knees Latest in News Microsoft SharePoint server hack sees Chinese threat actor hit roughly 100 orgs - here’s what we know so far Google should be worried – ChatGPT users now send 2.5 billion prompts a day, here’s how that compares Apple quietly reveals CarPlay's big video upgrade in iOS 26, but there's a catch Pokémon Presents live coverage – follow along with us live as every announcement happens Avatar: Frontiers of Pandora is getting a huge free update later this year that brings two major, all-new ways of playing The Samsung Galaxy Z Fold 7 can handle far more folds than the Z Fold 6 – but still pales in comparison to the OnePlus Open LATEST ARTICLES Open AI's massive Project Stargate is already struggling, may be scaled back This ChatGPT prompt will help you finally get started on the passion project you’ve put on hold for years The Hunting Wives on Netflix fails to bring the bingeworthy soap-opera chaos I hoped for – these 3 scandalous shows are what you should watch instead Help us, Lenovo, you're our only hope – Legion Go 2's prototype and OLED screen should worry Nintendo, MSI, and other handheld makers Avatar: Frontiers of Pandora is getting a huge free update later this year that brings two major, all-new ways of playing TechRadar is part of Future US Inc, an international media group and leading digital publisher. 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