OpenAI is attracting much attention.Stargate supercomputer projectOriginally considered the ultimate weapon in the AI arms race, OpenAI is now facing internal friction and stalled joint venture plans, forcing CEO Sam Altman to urgently seek alternatives to ensure it can acquire the massive computing power needed to maintain its lead.
When the Stargate AI Data Center project, a $500 billion investment backed by SoftBank, Oracle, and MGX, was announced in January 2025, it was hailed as a historic leap forward in U.S. artificial intelligence infrastructure. However, fast forward to February 2026, and the reality is quite different. According to...The Information Latest ReportIt was pointed out that the Stargate joint venture has essentially stalled – not only has the team not been recruited, but it has also failed to actively develop OpenAI’s core data center as originally envisioned.
Disconnection from SoftBank and stalled joint venture plans
The core of the bottleneck encountered by the Stargate project seems to lie in the gradual breakdown of the consensus between OpenAI and SoftBank. Although SoftBank initially invested a record $300 billion in OpenAI, the two sides reportedly clashed over key project details, including the location of data centers and whether to integrate SoftBank's renewable energy subsidiary, SB Energy.
With Masayoshi Son as chairman of the Stargate project, it was initially expected to be a coordinated and swift operation, with an initial investment of up to $1000 billion to be deployed immediately. However, this centralized joint venture is currently mired in the "planning stage."
Elon Musk, who publicly mocked the Stargate project last year and pointed out that SoftBank "actually had no money," now seems to have accurately predicted the logistical and financial frictions that are currently paralyzing this massive alliance.
Emergency Activation of "Plan B": Oracle, CoreWeave, and Debt Financing
With the official Stargate joint venture stalled, OpenAI has no time to wait. Its computing power needs are exploding as the company attempts to scale its GPUs from 1 million to 100 million. To prevent competitors from overtaking it in the race towards Artificial General Intelligence (AGI), Sam Altman has actively shifted to a decentralized "Plan B".
Instead of waiting for the SoftBank-led project to materialize, OpenAI opted to quietly move forward with direct deals. This includes a massive, reportedly $300 billion-a-year agreement with Oracle, signed independently, to secure 4.5 gigawatts (GW) of data center capacity.
In addition, OpenAI is deepening its collaboration with cloud service providers such as CoreWeave and actively exploring innovative debt financing options secured by NVIDIA equity to purchase or lease necessary hardware. Its flagship data center in Abilene, Texas, is already operational and continuing to expand, but its primary driving force is Oracle, rather than the broader Stargate Alliance.
xAI Threat and the Imminent Grid Crisis
OpenAI's urgent need for computing power comes against the backdrop of fierce competition and increasingly severe infrastructure constraints.
Elon Musk's xAI is developing at an astonishing pace; following its recent acquisition by SpaceX, Musk is making full use of the hardware ecosystem of his vast empire—and is even reportedly considering using the idle computing power of 400 million Tesla cars in North America to power its AI services.
Even more problematic is that OpenAI's relentless push to build gigawatt-scale data centers is directly hitting the physical limits of the US power grid. Grid operators like PJM have warned that the explosive energy demands of AI data centers could lead to rolling blackouts affecting tens of millions of residents as early as the summer of 2026, and the US government also plans to...AI companies are required to bear the electricity costs caused by soaring computing power..
Analysis of viewpoints
The stalled initial Stargate joint venture plan serves as a stark warning to the AI industry. It demonstrates that even drawing a $5000 billion pie on a whiteboard cannot magically bypass the physical realities of land acquisition, grid limitations, and complex corporate politics.
For OpenAI, the term "Stargate" is rapidly transforming from a single, centralized behemoth into a broad, fragmented "marketing umbrella" encompassing various independent infrastructure transactions. Sam Altman's willingness to sideline SoftBank and actively assemble computing power through Oracle, CoreWeave, and the bond market demonstrates a pragmatic sense of urgency.
In 2026, the AI war is not just about who has the best algorithms; it's also a brutal, highly capital-intensive battle for power and chips. If OpenAI cannot secure the hardware and energy resources of highly vertically integrated competitors like Elon Musk's xAI, or tech giants like Google, faster than them, its software lead will inevitably dissipate.
