SoftBank Group Corp. has announced that its $500 billion " Stargate " artificial intelligence project with OpenAI in the US is taking longer than expected to get underway. For the first time, the company conceded that the project is “bogging down” as it works to secure consensus among its partners. According to SoftBank’s Chief Financial Officer (CFO) Yoshimitsu Goto , SoftBank is in the process of forging a consensus with partners, including Oracle and Abu Dhabi’s MGX. SoftBank expects to begin “concrete” negotiations for its first Stargate data centre site soon.
In a statement to analysts and reporters (as noted by Bloomberg), Goto said: “We need to take our time to prepare a model case for Stargate. A lot of parties are involved. Time is needed to form a consensus.”
What is OpenAI’s Project Stargate and what may be slowing it down
SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman introduced the Stargate initiative in January. The duo outlined the plans to start deploying $100 billion right away and eventually increase that to around $500 billion. However, progress has stalled, with no fundraising or data centre construction underway so far.
According to a previous Bloomberg report from May, discussions around Stargate have slowed, influenced by market fluctuations, uncertainty around US trade policy, and concerns about the valuation of AI hardware.
The company is now also in talks with Taiwan Semiconductor Manufacturing Co ( TSMC ) and others about potentially participating in a $1 trillion AI manufacturing project in Arizona, the report adds.
Last month, OpenAI expanded its “Stargate” data centre project to Europe. The company announced plans to open a $1 billion facility in Norway in 2026.
This development followed earlier remarks from Tesla and SpaceX CEO Elon Musk, who, in January, had questioned OpenAI’s financial capability to execute its large-scale infrastructure ambitions, stating the company “don’t actually have the money.”
At the time, Musk also commented that “SoftBank has well under $10B secured. I have that on good authority.” Responding to Musk’s comments, OpenAI CEO Sam Altman said, “I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time.”
Despite Musk’s scepticism, OpenAI went on to announce a Stargate facility in the UAE in May and has since confirmed its first such project in Europe.
In a statement to analysts and reporters (as noted by Bloomberg), Goto said: “We need to take our time to prepare a model case for Stargate. A lot of parties are involved. Time is needed to form a consensus.”
What is OpenAI’s Project Stargate and what may be slowing it down
SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman introduced the Stargate initiative in January. The duo outlined the plans to start deploying $100 billion right away and eventually increase that to around $500 billion. However, progress has stalled, with no fundraising or data centre construction underway so far.
According to a previous Bloomberg report from May, discussions around Stargate have slowed, influenced by market fluctuations, uncertainty around US trade policy, and concerns about the valuation of AI hardware.
The company is now also in talks with Taiwan Semiconductor Manufacturing Co ( TSMC ) and others about potentially participating in a $1 trillion AI manufacturing project in Arizona, the report adds.
Last month, OpenAI expanded its “Stargate” data centre project to Europe. The company announced plans to open a $1 billion facility in Norway in 2026.
This development followed earlier remarks from Tesla and SpaceX CEO Elon Musk, who, in January, had questioned OpenAI’s financial capability to execute its large-scale infrastructure ambitions, stating the company “don’t actually have the money.”
At the time, Musk also commented that “SoftBank has well under $10B secured. I have that on good authority.” Responding to Musk’s comments, OpenAI CEO Sam Altman said, “I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time.”
Despite Musk’s scepticism, OpenAI went on to announce a Stargate facility in the UAE in May and has since confirmed its first such project in Europe.
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