SoftBank, OpenAI scale back Stargate ambitions, eye smaller data centre by year-end: Report

SoftBank and OpenAI are reportedly scaling back their ambitious Stargate project, initially pitched as a $500 billion AI infrastructure initiative, with plans now focused on building a smaller data center by the end of the year, according to The Wall Street Journal.

Launched earlier this year at the White House, the Stargate initiative had promised to supercharge US AI capabilities and generate over 100,000 jobs. 

The venture will be initially funded by SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI will serve as the primary partners, with SoftBank overseeing financial responsibilities and OpenAI managing the operations.

The companies had committed $100 billion for immediate deployment, with additional funding to follow over four years.

However, internal disagreements between SoftBank and OpenAI over critical decisions, including site locations, have delayed progress, the report added. Despite the friction, both firms said in a statement that they are “moving with urgency on site assessments” and exploring multiple state-level projects, reports Reuters. 

Oracle Chairman Larry Ellison previously stated that work on the first Stargate data center had already commenced in Texas. Separately, reports indicate that OpenAI has signed a $30 billion deal with Oracle to lease 4.5 gigawatts of data center capacity.

Under the initiative, Oracle, NVIDIA, and OpenAI will work closely to build and operate the computing infrastructure. 

This also comes on the heels of the company rolling out OpenAI for Countries, an initiative under the Stargate project aimed at helping nations build AI infrastructure.  

Partner countries can expect support in setting up in-country data centres to ensure data sovereignty and build localised AI applications. Additionally, the initiative includes co-investing in national AI startup funds to spur local innovation, job creation, and economic growth.