US EditionOpenAI's Stargate project reportedly struggling to get off the ground, thanks to tariffs
- OpenAI's Stargate project, led by OpenAI and financed by SoftBank, faces significant delays as of May 2025 due to tariff-related economic issues affecting data center construction in the U.S. And overseas.
- These delays stem from uncertainty caused by President Trump's tariffs, which analysts say could raise building costs by 5 to 15 percent and increase investor caution amid market volatility and cheaper AI competition.
- SoftBank has yet to finalize a financing model or engage in serious discussions with banks and asset managers, despite assembling a 20 to 30 person team to accelerate the buildout of up to 20 large data centers.
- SoftBank CEO Masayoshi Son pledged at a White House event to deploy $100 billion immediately and raise $500 billion over four years for Stargate, but no deals have closed, and Wall Street doubts costly data center investments amid economic risks.
- The delays and financing problems suggest that tariff risks and market reassessments could hinder Stargate's goal to create the largest AI training facility, raising concerns about the value and timing of large-scale AI infrastructure projects.
17 Articles
17 Articles
SoftBank, OpenAI’s $100B investment delayed due to tariffs: report
SoftBank and OpenAI’s plan to “immediately” invest $100 billion in artificial intelligence infrastructure in the US has faced months of delays due to fears that President Trump’s tariffs could send costs soaring, according to a report.
OpenAI’s Stargate Project Faces Struggles Due to Tariffs
Read OpenAI’s ambitious Stargate data center project appears to be running into very long delays, most likely because of economic uncertainty caused by such tariffs. The broader initiative to grow OpenAI’s infrastructure and artificial intelligence capabilities is a joint project with Softbank. As Bloomberg comments, further impacts include deep and structural problems plaguing the tech industry. Even heavyweights Microsoft and Amazon are curren…
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