Categories: Tech & Ai

OpenAI’s Stargate project reportedly struggling to get off the ground, thanks to tariffs


OpenAI’s ambitious Stargate data center project is facing delays thanks to tariff-related economic uncertainty, reports Bloomberg.

Growing market volatility and cheaper AI services have made banks, private equity investors, and asset managers wary of investing in Stargate, an OpenAI-led project that aims to raise up to $500 million for AI infrastructure in the U.S. and overseas. SoftBank, which in January said it would contribute significant capital to Stargate, has yet to develop a financing template or begin detailed discussions with potential backers, according to Bloomberg.

Tariffs could greatly increase the cost of data center buildouts. Per an analysis by TD Cowen cited by Bloomberg, hiked prices for server racks, cooling systems, chips, and other components could contribute to overall build cost rises of 5-15% on average.

Investors are also growing wary of an overcapacity spike. As Bloomberg notes, tech giants including Microsoft and Amazon have adjusted their data center strategies, in some cases pulling back on construction projects.



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Abigail Avery

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Abigail Avery

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