The OpenAI Stargate project, although aiming for serious artificial intelligence infrastructure investments, has started to stumble along the way. This initiative, which plans to establish giant data centers in the United States and abroad, is looking for a $500 million fund. However, the shaking of global economic balances and market fluctuations have made this process difficult. It is stated that especially the financial circles are keeping their distance from the project .
Many private equity funds, banks and asset managers do not find Stargate’s financial structure secure enough. The recent decline in AI services has also been a factor fueling this distrust. Now, competitive solutions can be produced with smaller investments, reducing the appetite for large-scale projects. In addition to all this, investors prefer to take a more cautious position against projects with uncertain returns.
OpenAI Stargate is also affected by developments in international trade
In addition, developments in international trade policies have become one of the obstacles in front of Stargate. In particular, customs tariffs on the import of equipment used in data center installations seriously affect the project. An analysis by TD Cowen shows that these tariffs can increase construction costs by an average of 5% to 15%. This creates unforeseen gaps in budget planning.
In addition to customs duties, price increases in cooling systems, chips and server racks are also shaking the total project budget. Since most of the hardware components are supplied from abroad, exchange rate fluctuations also pose a separate risk for Stargate. Under these conditions, investors cannot ignore the possibility of cost increases. Thus, both economic and logistical reasons are holding the investor back.
It had previously been publicly reported that SoftBank would contribute to the project. In statements made in January, it was stated that the company would contribute significant capital. Despite this, SoftBank has not yet presented a financing model. Similarly, comprehensive talks with potential backers have not yet begun.
According to Bloomberg, this uncertainty environment is not only noticeable in terms of Stargate, but also in terms of general sectoral trends. For example, even giant technology companies such as Microsoft and Amazon have put the brakes on data center projects. In some cases, projects are being canceled, while others are being postponed to a later date. This indicates that a saturation point is approaching in data center investments.
Another question mark on investors’ minds is the concern about excess capacity. With the commissioning of new data centers, the possibility of supply exceeding demand is frightening. This situation makes investments with low returns and high operating costs even riskier. This risk factor directly affects giant projects like Stargate.
