Stargate AI Project Scales Back to Smaller Data Center Amid Partner Disputes

The ambitious $500 billion Stargate Project—led by OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL)—aimed at boosting U.S. artificial intelligence capabilities, is reportedly shifting focus to a smaller-scale launch. According to The Wall Street Journal, the first data center will now be a modest facility, likely in Ohio, slated for completion by the end of 2025.

Originally announced with much fanfare in January, the Stargate initiative was touted by President Donald Trump as a cornerstone of U.S. dominance in the AI race against China. The project was projected to create over 100,000 jobs, with an initial $100 billion investment and further funding planned over four years.

However, tensions between OpenAI and SoftBank—co-leads of the joint venture—have slowed progress. Disagreements over site locations and strategic direction have reportedly delayed execution. Despite internal friction, the partners released a joint statement affirming their commitment, stating they are “moving with urgency on site assessments” across multiple U.S. states.

Oracle Chairman Larry Ellison previously confirmed construction had begun on one data center in Abilene, Texas, underlining the project's broader ambition to create an AI infrastructure backbone.

Trump’s administration continues to position AI as a national priority. On his first day back in office, Trump declared a national energy emergency to eliminate regulatory hurdles for oil, gas, coal, and nuclear energy—moves expected to support high-energy-demand projects like Stargate.

As the AI arms race accelerates globally, the Stargate project remains a symbol of America’s tech-industrial push, though its initial rollout may be less monumental than first envisioned. Stakeholders are closely watching how this scaled-down launch sets the tone for future expansions.