SoftBank Group and OpenAI’s ambitious plan to invest $100 billion in building extensive artificial intelligence infrastructure across the United States, known as the Stargate Project, is reportedly facing delays in securing financing. Economic risks stemming from potential US tariffs are holding up crucial financing talks, according to Bloomberg. More than three months after the project’s high-profile announcement, SoftBank has yet to develop a project financing template or begin detailed discussions with potential financial partners, including banks, private equity investors, and asset managers.
This slowdown introduces uncertainty for a venture positioned as vital for advancing US AI capabilities and generating significant economic activity. States across the country have actively competed to host the massive data centers envisioned by Stargate, offering incentives like land and tax breaks. The delay highlights how macroeconomic factors, such as trade policies, can impact even the largest technology investments.
Financing Challenges Emerge
Project Stargate was unveiled in January 2025 by SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman, with an initial commitment to deploy $100 billion towards building AI infrastructure in the US. The project, endorsed by President Trump, was framed as a national strategy to bolster US AI leadership and national security. Despite the initial ambitious timeline, sources familiar with the situation indicate that key components of the plan remain in flux, lacking confirmed government support or a detailed financial blueprint.
While OpenAI and its partners initially committed $100 billion, reports suggest only $45 billion had been secured as of February 2025, according to Digital Infra Network. Elon Musk, a vocal critic, questioned the project’s funding shortly after its announcement, claiming SoftBank had significantly less than the stated amount secured.
SoftBank is reportedly seeking up to $16.5 billion in financing for Stargate via a bridge loan, potentially its largest ever facility denominated in dollars.
The economic risks posed by Washington’s tariffs are a significant factor in the financing delays. Sweeping reciprocal tariffs imposed in April, including duties on technology equipment suppliers from China, Taiwan, and South Korea, are expected to make the equipment needed for data centers significantly more expensive. While semiconductors were initially exempted, targeted tariffs on chips could follow. The extent of the tariff impact depends on how AI hardware is classified.
Strategic Shifts And Partnerships
Project Stargate is structured as a distinct new company formed by OpenAI and SoftBank, with SoftBank leading financially and OpenAI directing operations. Initial equity funding came from SoftBank, OpenAI, Oracle, and the UAE investment fund MGX. Key technology partners include ARM Holdings, Microsoft, NVIDIA, Oracle, and OpenAI, according to OpenAI’s announcement.
The project aligns with OpenAI’s broader strategy to diversify its infrastructure and reduce reliance on Microsoft’s Azure cloud, its primary provider since 2023. OpenAI’s need for computing power is immense, with projected annual compute expenses exceeding $9.5 billion by 2026. This has led to deals like a $11.9 billion, five-year compute agreement with CoreWeave.
SoftBank’s role in OpenAI has grown significantly, becoming the largest backer after a $40 billion investment finalized in February 2025. This investment is intended to fuel OpenAI’s expansion beyond Azure and accelerate projects like Stargate. SoftBank is also focusing on AI-optimized hardware through its subsidiary Arm Holdings, with SoftBank CEO Masayoshi Son stating ““Software alone won’t be enough”” to sustain AI’s growth. OpenAI is also working on developing custom AI chips.
Despite OpenAI’s moves towards independence, the partnership with Microsoft remains important. Microsoft continues as a major investor and its Azure platform is still deeply integrated into OpenAI’s operations. Microsoft CEO Satya Nadella has maintained that “OpenAI APIs are exclusive to Azure going forward even, so nothing changes there… OpenAI has committed to Azure in a very significant way.”, although Microsoft did secure a right of first refusal clause for Azure infrastructure needs. Microsoft is also investing heavily in its own AI infrastructure and also developing in-house AI chips.
Challenges And Global Ambitions
The power requirements of projects like Stargate, estimated at 5 gigawatts or more, are driving interest in advanced energy solutions. Both Sam Altman and SoftBank have invested in Helion Energy, a nuclear fusion startup targeting commercial power by 2028. Microsoft also has an agreement to purchase power from Helion.
OpenAI is also navigating a complex legal and regulatory environment. The company faces ongoing lawsuit from Elon Musk regarding its restructuring into a Public Benefit Corporation. Musk’s attorney has asserted that “the charity is still turning over its assets and technology to private persons for private gain — including Sam Altman — while moving all of the charity’s actual work on AI/AGI into a giant for-profit corporation,” calling it a “transparent dodge.”
An OpenAI spokesperson characterized Musk’s lawsuit as “baseless”, saying it “only proves that it was always a bad-faith attempt to slow us down.”
However, as Columbia Law School professor Dorothy Lund noted, “When you’re a mission driven company which needs money from investors, you are in a dangerous position.”
Beyond the US, Project Stargate is reportedly evaluating potential expansion into Europe, considering sites in the United Kingdom, Germany, and France, according to a Financial Times report. This exploration highlights the global nature of the AI infrastructure race, with European countries also pursuing significant AI investment strategies. OpenAI CEO Sam Altman also previously indicated his company would love to establish a “Stargate Europe”. However, SoftBank and OpenAI recently reaffirmed their primary commitment to the US investment plan.