SoftBank Stargate AI Investment Faces Delays Amid US Tariff Concerns

SoftBank and OpenAI's Stargate project, a $100 billion initiative aimed at building extensive AI infrastructure in the U.S., is facing significant delays due to economic uncertainties linked to U.S. tariffs and market volatility. Despite initial commitments and high-profile backing, SoftBank has yet to finalize financing plans or engage in detailed talks with banks and investors, as rising tariffs on critical data center components could increase construction costs by 5% to 15%. Additionally, the emergence of cheaper AI services and concerns about oversupply have made financiers more cautious, with major tech companies like Microsoft and Amazon adjusting their data center strategies amid slowing growth. Although the first data center in Texas has begun construction, financing remains a challenge, with SoftBank still optimistic about long-term returns despite the setbacks. The project’s delays highlight how trade policies and economic risks can impact even large-scale technology investments framed as crucial for U.S. AI leadership and national security. Discussions about the project's revenue-sharing and structural aspects continue amid these challenges.