OpenAI has halted its ambitious Stargate project, initially planned in partnership with SoftBank and Oracle. The suspension is due to internal corporate disagreements, a shortage of engineering talent, and investor concerns about potential capital shortages by 2027.

Despite the freeze, OpenAI still requires the planned 10 GW of computing power and has shifted its strategy towards leasing servers from Oracle, SoftBank, AWS, and Google Cloud, focusing more on local data centers such as a 1.2 GW facility under construction in Texas.

This strategic pivot is expected to increase OpenAI’s infrastructure expenses to an estimated $600 billion by 2030.

Source: theinformation.com