OpenAI scales back, reworks $500B Stargate data center initiative, FT reports

OpenAI is scaling back and reworking its $500B Stargate data center initiative, halting or pausing several planned projects while shifting toward a more flexible model that relies on leasing compute capacity from third-party providers, The Financial Times reports. The change reflects a strategic pivot away from large-scale owned infrastructure toward faster access to computing resources, even as competition for AI infrastructure and talent continues to intensify. Stargate was initially announced in early 2025 by Donald Trump as a joint venture between OpenAI, Oracle (ORCL), Abu Dhabi fund MGX and SoftBank (SFTBY).