Stargate · Tom's Hardware
OpenAI has effectively abandoned first-party Stargate data centers in favor of more flexible agreements — firm now prefers to lease compute and confirms Stargate is an umbrella term
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In early 2025, OpenAI announced Stargate, a joint venture with Oracle and SoftBank, which aimed to invest $500 billion in AI data centers in the United States.
Key facts
- Many institutions believe in its potential, though, with the firm securing $110 billion in its latest funding round — the biggest amount secured in Silicon Valley history and $10 billion more
- In early 2025, OpenAI announced Stargate, a joint venture with Oracle and SoftBank, which aimed to invest $500 billion in AI data centers in the United States
- Even though OpenAI has made a name for itself in AI, the startup has not turned a profit since it was founded in 2015
- Stargate’s initial goal was to build 20 data centers, with the first project at Abilene, Texas, already operational
Summary
This is a sensible idea for the startup, which is burning through cash and has reportedly missed internal revenue targets in recent months. Stargate’s initial goal was to build 20 data centers, with the first project at Abilene, Texas, already operational. Other Stargate projects located in other areas have also been hit by uncertainties. It has also done the same for another Stargate project in Narvik, Norway, with Microsoft stepping up to take over the lease for the site.