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OpenAI has effectively abandoned first-party Stargate data centers in favor of more flexible deals — company now prefers to lease compute and says Stargate is an umbrella term

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(Image credit: Getty / Anna Moneymaker) In early 2025, OpenAI announced Stargate, a joint venture with Oracle and SoftBank, which aimed to invest $500 billion in AI data centers in the United States. But after more than a year of challenges and disagreements, it seems that the startup has abandoned the original idea of directly owning infrastructure alongside its two partners. According to the Financial Times , OpenAI now prefers to rely on third-party providers and lease capacity in the long term. This is a sensible idea for the startup, which is burning through cash and has reportedly missed internal revenue targets in recent months. But it has also caused chaos among its partners and put its reliability into question. According to the report, OpenAI has "in practice... abandoned the joint venture," choosing instead large bilateral deals with Oracle and more.…

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