OpenAI and SoftBank are reportedly facing significant delays in financing the ambitious Stargate project. Despite the promise of a $100 billion (€90 billion) investment in AI infrastructure in the US, the economic risks associated with trade tariffs have slowed down financing talks. Three months after the announcement, there is still no concrete financing model or in-depth consultation with potential investors.
This is according to sources at Bloomberg. The collaboration between SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman was announced with great fanfare in January. The plan was to invest $100 billion in AI infrastructure “immediately,” with an ultimate goal of approximately $500 billion. The reality is proving more difficult: SoftBank has not yet developed a financing structure or entered into serious talks with banks and asset managers.
Preliminary talks with dozens of lenders—including Mizuho, JPMorgan, Apollo Global Management, and Brookfield Asset Management—have failed to produce concrete deals. Investors are reassessing the value of data centers in light of growing economic uncertainty and cheaper AI services.
Trade tariffs complicate financial forecasts
A key factor in the slowdown is President Trump’s trade policy. Aggressive tariffs are making financial projections for AI projects more complex. Higher capital costs, lenders’ reluctance to take on risky investments, and concerns about how a potential global recession could affect demand for data centers are slowing progress.
Tariff increases on everything from server racks to cooling systems and chips could raise data center construction costs by 5 percent to 15 percent. In addition, the emergence of cheaper AI models, such as those from Chinese startup DeepSeek, raises questions about the long-term profitability of projects associated with OpenAI.
Despite the financing problems, SoftBank has assembled a team of 20 to 30 people within its Vision Fund investment arm to focus on Stargate. Led by Vikas J. Parekh, this team is working on the accelerated rollout of large-scale data centers.
In addition to SoftBank, Oracle, and Mubadala’s MGX are backing the Stargate project. The financing plan envisages SoftBank providing a small portion of its capital (10 percent to 20 percent), supplemented by debt.
Tip: Stargate’s $500 billion AI infrastructure puts the US in a strong position