OpenAI and SoftBank’s $500 bln AI project struggles to gain traction- WSJ

Published 22/07/2025, 00:56
© Reuters

Investing.com-- OpenAI and SoftBank’s $500 billion project to build more artificial intelligence infrastructure in the U.S. is struggling to get off the ground and has sharply scaled back its near-term goals, the Wall Street Journal reported on Monday.

Project Stargate, which was announced in collaboration with the U.S. government earlier this year, has yet to complete a single deal for a data center, the WSJ report said. 

SoftBank Group Corp. (TYO:9984) and OpenAI are reportedly at odds over several terms of the partnership, including where to build the data centers, the WSJ report said, citing people with knowledge of the matter.

The two had initially pledged to invest $100 billion immediately, but are now setting a more modest target of building a small data center by end-2025, likely in Ohio. 

The report highlights some snags in Softbank (OTC:SFTBY) CEO Masayoshi Son’s AI ambitions, who has dedicated several billions of dollars towards AI investment in recent years.

Softbank earlier in 2025 committed $30 billion to OpenAI, making it the company’s biggest backer alongside Microsoft (NASDAQ:MSFT). 

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