A new report claims tensions are brewing between Softbank and OpenAI over major terms in their Stargate collaboration—chiefly, where the data centers should go and funding. People familiar with the matter say OpenAI’s grand Stargate vision now appears to be shrinking fast.
Stargate Unravels: Report Claims Softbank and OpenAI Tensions Stall AI Ambitions
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WSJ Report Sources Say Stargate Is Shrinking
OpenAI’s Stargate project—a sweeping artificial intelligence (AI) infrastructure venture backed by OpenAI, Softbank, Oracle, and MGX—was unveiled alongside President Trump in January 2025. The joint entity, Stargate LLC, pledged up to $500 billion over four years to construct cutting-edge AI data centers across the U.S. But according to a newly published Wall Street Journal (WSJ) report, that grand vision may already be losing steam.
Despite a bold $100 billion commitment, sources “familiar with the matter” now say the project has scaled back dramatically—focusing instead on building a single, modest data center by year’s end, likely in Ohio. The insiders added that although Softbank pledged $30 billion to OpenAI, ongoing disputes have brought momentum to a standstill, with no data center agreements yet finalized under the Stargate banner.
OpenAI founder Sam Altman has reportedly forged ahead on his own, locking in major data center deals—including a $30 billion-per-year agreement with Oracle for 4.5 gigawatts of capacity, entirely separate from Softbank. Sources familiar with the arrangement said the planned infrastructure, spread across U.S. sites, would draw more power than two Hoover Dams.
Earlier this year, Elon Musk cast doubt on the Stargate initiative’s financial foundation, alleging the group behind the $500 billion AI venture lacked the funds to follow through. On Jan. 21, 2025—shortly after President Trump’s announcement—Musk posted on X, “They don’t actually have the money,” adding, “SoftBank has well under $10B secured. I have that on good authority.”
The WSJ report also points out that OpenAI’s partnerships with firms like Coreweave have already met the 2025 capacity goals initially set for Stargate. Meanwhile, some OpenAI facilities in Texas, labeled as part of the Stargate rollout, are reportedly being built without any financial backing from the joint venture. Following Musk’s criticism, CEO Sam Altman fired back on X, replying, “wrong, as you surely know,” and invited Musk to visit the project’s first Texas site, which was already under construction.
The alleged unraveling of Stargate’s original blueprint could hint at deeper fractures beneath the surface—clashing ambitions, fractured alliances, and a scramble for control over the future of AI infrastructure. As the power players diverge, the initiative’s fate may hinge not on vision but on execution. What once aimed to unify American AI innovation may now fragment into rival empires racing to shape tomorrow’s intelligence.
