OpenAI’s Stargate AI Data Centers Face Delays as Partner Squabbles Erupt Between Oracle

OpenAI’s original plan called for a rapid acquisition of 10 GW of compute capacity over three years, split between two partner‑built facilities, but the timeline has now slipped as the three‑way “Stargate” venture stalls over control of the sites. According to Tom’s Hardware, the dispute centers on who will own the physical infrastructure and who will manage the underlying hardware‑software stack, with Open AI, Oracle and SoftBank each pressing for “ultimate control” of the data centers (Tom’s Hardware). The impasse has pushed back the rollout of the first 2 MW‑scale campus that Oracle was slated to deliver by late 2025, effectively postponing OpenAI’s ability to scale its models without relying on external cloud providers.

The partnership’s origins trace back to President Donald Trump’s January 2025 announcement of a $500 billion investment to build a network of AI‑focused data centers across the United States under the “Stargate” banner (Tom’s Hardware). Oracle secured the first contract in the second half of 2025, promising a facility capable of housing roughly 2 million AI chips and committing OpenAI to purchase $300 billion of compute over five years (Tom’s Hardware). However, analysts cited in the same report warn that OpenAI could run out of cash by mid‑2027 if it does not secure cheaper, owned‑capacity hardware, a pressure that has forced the company back to the negotiating table (Tom’s Hardware).

Oracle’s bond offerings in Q3 and Q4 of 2025, intended to fund the massive build‑out, attracted criticism from investors who alleged “misleading statements” about the scope and timing of the Stargate projects (Tom’s Hardware). Those investor concerns have added another layer of friction, as Oracle now faces scrutiny over its ability to meet the promised compute delivery schedule while maintaining financial stability. Meanwhile, SoftBank entered the fray later, stepping in as a co‑investor on a planned 1 GW Texas data center that OpenAI had originally intended to develop independently (Tom’s Hardware). The shift from a solo build‑out to a joint venture with SoftBank sparked a “tug of war” over site ownership and operational governance, further delaying the Texas campus (Tom’s Hardware).

The technical stakes of the dispute are high. The Stargate facilities were designed to address what The Information describes as the “next big AI bottleneck”—photonics‑enabled, ultra‑high‑speed data movement across massive chip farms (The Information). Without a clear governance model, the partners risk fragmenting the hardware stack, which could force OpenAI to continue relying on third‑party cloud services for latency‑critical workloads. Energy supply constraints also loom; the projected compute density of the Stargate sites would place additional strain on regional power grids, a factor that regulators are beginning to monitor (Tom’s Hardware). Until the ownership and control issues are resolved, OpenAI’s roadmap for scaling beyond its current 3 GW of in‑house capacity remains uncertain.

Financially, the delay could reshape the economics of the entire initiative. The $300 billion compute purchase agreement with Oracle hinges on the delivery of the promised 2 million‑chip facility; any postponement erodes the value of that contract and may trigger renegotiations or penalties (Tom’s Hardware). SoftBank’s involvement, while potentially injecting fresh capital, also introduces new expectations around profit sharing and technology licensing that differ from Oracle’s cloud‑centric model. As the three parties jockey for leverage, OpenAI risks being caught in a “three‑way tug of war” that could force it to defer critical AI training runs, potentially ceding ground to competitors like Anthropic and Google that are advancing their own owned‑infrastructure strategies (The Information).

In short, the Stargate data‑center rollout—once billed as a cornerstone of OpenAI’s path to self‑sufficient AI compute—has become a casualty of corporate politics and financing headaches. The next few weeks will likely see intensified negotiations, with each stakeholder weighing the cost of delay against the strategic advantage of controlling a $500 billion AI infrastructure pipeline. Until a consensus on ownership and operational control emerges, OpenAI’s ambitious compute expansion will remain on hold, leaving the company to lean on existing cloud partners while the industry watches how the power dynamics of AI‑scale infrastructure will shape the competitive landscape.