It seems that Sam Altman’s OpenAI and SoftBank Group’s project Stargate may have hit a snag. SoftBank Group Corp.’s plans to invest $100 billion in artificial intelligence infrastructure in the U.S. have slowed, with economic risks stemming from Washington D.C.’s tariffs holding up financing talks.
The Stargate Project was supposed to be a major initiative backed by SoftBank and OpenAI to build one of the world’s largest AI-focused data centers. Located in the U.S., the facility aims to support the growing computational demands of advanced AI systems. SoftBank’s involvement highlights its commitment to AI infrastructure, while OpenAI brings cutting-edge research and development expertise. The project is expected to cost billions and could be operational by 2028. By combining resources, the two companies aim to accelerate AI innovation, improve model performance, and reduce reliance on existing cloud providers, marking a significant step in shaping the future of AI.
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SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman unveiled the Stargate project in January with promises to begin deploying $100 billion “immediately” and raise that to around $500 billion over time. But in over three months, SoftBank has yet to reveal any concrete plans to banks and possible investors.
According to people familiar with the matter, who asked not to be named as the information is not public, preliminary talks with dozens of lenders and alternative asset managers — from Mizuho to JP Morgan to Apollo Global Management to Brookfield Asset Management — kicked off earlier this year. But no deals have ensued, as financiers reassess data centers in the wake of growing economic volatility and cheaper AI services.
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The delay in launching the Stargate Project reflects the broader challenges of executing large-scale, high-cost technology initiatives. It signals financial caution among investors due to rising costs, such as potential tariffs, and uncertainty in the global economic environment. Delays can affect momentum, stall innovation, and create room for competitors to advance. It may also impact partnerships and public confidence in the project’s feasibility. While the long-term vision remains intact, such setbacks highlight the complexity of aligning funding, infrastructure, and strategy at scale. Ultimately, the delay suggests that even ambitious tech projects must navigate practical and political realities.