What Next | Daily News and Analysis TBD | The A.I. Data Center Push That Wasn't
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Aug 3, 2025 In this engaging discussion, Berber Jin, a reporter specializing in AI for The Wall Street Journal, delves into the troubled $500 billion Stargate initiative initially announced by tech leaders. The ambitious plans to build data centers across the U.S. hit significant hurdles, condensing down to a lone facility in Ohio. Jin addresses financing challenges and regulatory obstacles that thwarted the grand vision. The fallout from Sam Altman’s ousting at OpenAI adds intrigue, revealing the complexities of partnerships and competition in the AI landscape.
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Stargate Project Scaled Back
- OpenAI and SoftBank announced an ambitious $500 billion AI data center project called Stargate with President Trump in early 2025.
- Months later, the project significantly downsized to a single small pilot data center in Ohio due to logistical challenges.
Origins and Partners of Stargate
- Stargate began as Sam Altman's vision to build massive US data centers to support OpenAI's growing compute needs after ChatGPT's success.
- Microsoft was initially approached but retreated due to internal complications, leading Altman to collaborate with SoftBank instead.
Masayoshi Son’s AI Comeback Bet
- Masayoshi Son, known for his big bets in tech, seeks to leverage AI to redefine his legacy after missing early AI investments.
- His partnership with OpenAI in Stargate is part of a grand vision to position SoftBank as a leading AI infrastructure player.