OpenAI-SoftBank Stargate AI Project Faces Funding Disputes, Scales Back to Ohio Facility

The ambitious $500 billion Stargate AI infrastructure project, a joint venture between OpenAI and SoftBank announced at the White House earlier this year under President Trump's administration, has encountered significant setbacks due to internal disputes over control and governance. The collaboration between OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son has stalled progress, forcing the project's scope to be drastically reduced to a single smaller data center in Ohio by year’s end, down from its original grand vision that included over 100,000 jobs and a $100 billion immediate investment. Tesla CEO Elon Musk has publicly expressed skepticism about the project's financial backing, doubting that the involved companies possess sufficient funds to fulfill the initiative’s promises. Despite Musk's criticisms, OpenAI has responded by highlighting ongoing development efforts and partnerships, such as a $30 billion deal with Oracle to enhance AI computational capacity. The delays and scaled-back plans have also impacted AI chip manufacturers, including Nvidia and AMD, amid a broader chip shortage driven by surging AI demand. The Stargate project's challenges underscore the difficulties in coordinating large-scale AI infrastructure investments among multiple high-profile stakeholders.