OpenAI's Stargate project struggling to get off the ground, due to tariffs
a year ago
- #Data Centers
- #Investment
- #OpenAI
- OpenAI's Stargate data center project is experiencing delays due to tariff-related economic uncertainty.
- Banks, private equity investors, and asset managers are hesitant to invest in Stargate amid market volatility and cheaper AI services.
- SoftBank, a potential major backer, has not finalized financing or detailed discussions for the project.
- Tariffs could raise data center build costs by 5-15% due to increased prices for components like server racks and chips.
- Investors are concerned about potential overcapacity, with tech giants like Microsoft and Amazon scaling back data center projects.