Stargate AI data centers for OpenAI reportedly delayed by squabbles between partners — sources say OpenAI, Oracle, and SoftBank disagreed on who would have ultimate control of the planned data centers
Source: Tom’s Hardware
Image credit: Getty / Bloomberg
Announcement and partnership
U.S. President Donald Trump announced in January 2025 that OpenAI, Oracle, and SoftBank would invest $500 billion and build several data centers across the United States as part of their “Stargate” AI initiative. According to a report by The Information, the project quickly turned into a three‑way tug of war among the partners.
Oracle’s involvement
Oracle was the first to secure a deal with OpenAI by the start of the latter half of 2025, promising to build a massive Stargate data center with a projected compute capacity of 2 million chips. OpenAI later pledged to purchase $300 billion worth of compute from Oracle over the next five years, though the financing details remain unclear.
Oracle issued two bond offerings in Q3 and Q4 of the previous year, but faced investor lawsuits alleging misleading statements about the funding needed for the data‑center build‑out.
SoftBank negotiations
The agreements initially excluded SoftBank. Around the same time, OpenAI was planning a 1 GW data center in Texas, but the project was paused while negotiations with Oracle continued. When the Texas site was revisited, SoftBank entered as a partner, leading to a protracted dispute over control.
Sources say the deal was finally settled after an intensive session at SoftBank’s headquarters in Tokyo. The compromise gave SoftBank ownership and development rights to the site, while OpenAI retained design control and a long‑term lease. SoftBank also had to pause its $50 billion acquisition of data‑center operator Switch due to regulatory hurdles.
Current status and outlook
After months of delays, the Stargate project appears to be back on track, with progress on several initiatives. The Information notes that OpenAI would ideally own and operate all its data centers, but the cost is prohibitive for a company that has yet to achieve profitability.
Investors remain optimistic: OpenAI is reportedly seeking $100 billion in its latest funding round, aiming for an $800 billion valuation.