SoftBank-OpenAI $500B AI Data Center Project Hits Roadblocks

SoftBank and OpenAI's ambitious $500 billion AI data center initiative, announced in January, has stalled due to unresolved disagreements over key project terms. The partners now plan to downscale to a smaller Ohio facility by year-end after failing to align on site locations and structural designs.

The Stargate project, positioned as a major U.S. infrastructure investment, initially promised 100,000 jobs and a $100 billion upfront commitment. SB Energy, SoftBank's power subsidiary, remains the designated energy provider despite the scaled-back plans.

Disagreements between SoftBank's Masayoshi Son and OpenAI's Sam Altman have forced a strategic retreat to more modest goals. Both companies continue site assessments across multiple states while pursuing alternative financing arrangements.