The Stargate project, a high-profile collaboration between OpenAI, SoftBank, and Oracle announced in January 2025, is adjusting its short-term ambitions amid implementation challenges.
According to a July 21 Wall Street Journal report, the venture partners are now focusing on constructing a modest data center in Ohio by year-end, significantly scaling back from their initial grand vision. When President Donald Trump hosted tech executives at the White House in January, the Stargate initiative was presented as a $500 billion investment that would create over 100,000 American jobs and secure U.S. leadership in artificial intelligence.
The project has encountered difficulties getting off the ground, with SoftBank and OpenAI reportedly at odds over crucial partnership terms, including optimal locations for the infrastructure. Sources familiar with the matter told the WSJ that SoftBank is not involved in the construction of the 1.2-gigawatt facility already underway in Abilene, Texas, which is being built with Oracle's support.
Despite these setbacks, both companies stated they are "moving with urgency on site assessments" and advancing projects across multiple states. The Ohio facility could serve as a testing ground for more energy-efficient AI infrastructure at localized scales.
Industry observers suggest this smaller data center might function as a pilot for SoftBank CEO Masayoshi Son's even more ambitious "Crystal Land" project - a proposed $1 trillion AI and robotics manufacturing hub in Arizona. That initiative aims to create a U.S. equivalent to China's Shenzhen, focusing on AI-powered industrial robots and advanced computing technologies.
Meanwhile, OpenAI continues expanding its computing capacity through other partnerships, recently signing a $30 billion deal with Oracle to lease 4.5 gigawatts of computing power. The company has also launched "OpenAI for Countries," a global initiative supporting national governments in building AI infrastructure aligned with democratic principles.