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6d ago

Stargate AI Initiative Faces Delays as Tariffs Stall $100 Billion Investment

SoftBank and OpenAI's ambitious U.S. AI infrastructure project struggles to secure financing due to cost concerns tied to Trump-era import tariffs and economic uncertainty.

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SoftBank Group has been actively investing in AI under its flamboyant founder and CEO Masayoshi Son (R)
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Overview

  • The $100 billion Stargate initiative, led by SoftBank and OpenAI, has faced significant delays as financing deals remain incomplete.
  • President Trump's import tariffs could increase data center construction costs by 5–15%, according to TD Cowen analysis, deterring investors.
  • The first data center, under construction in Abilene, Texas, is being developed by Oracle and is planned to become the world's largest AI training facility.
  • SoftBank has assembled a dedicated team of 20–30 people to expedite funding, with backing from Oracle and MGX, but progress remains slow.
  • OpenAI has abandoned its controversial plan to convert to a for-profit structure, citing legal challenges and strategic concerns.