The ambitious Stargate project, backed by OpenAI and designed to build sprawling data centers across the US, seems to have hit a financial roadblock. As conveyed by the Financial Times, the project lacks a comprehensive plan and confirmed financing.
Stargate, a partnership including OpenAI, international conglomerate SoftBank, and Middle Eastern AI fund MGX among others, has projections to invest between $100 billion to a staggering $500 billion in AI-supportive data centers. However, OpenAI and SoftBank are posed to initially contribute only above $15 billion each. The shortfall is hoped to be filled with equity from existing investors and debt to realize the project’s significant ambitions.
Adding to the project’s concerns, Elon Musk, billionaire and advisor to President Trump’s DOGE commission, took to social media to question Stargate’s alleged financial instability. This criticism is said to have caused discontent among senior White House officials, regardless of Trump’s attempts to mitigate Musk’s comments.
OpenAI has been approached for a response, any updates will be provided promptly.
Original source: Read the full article on TechCrunch
