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OpenAI's Massive Stargate Data Center Canceled As Firm Can't Reach Terms With Oracle

Accepted submission by Arthur T Knackerbracket at 2026-03-09 09:12:58
Business

EDITORS: THIS HAS BEEN PRODUCED BY SOFTWARE UNDER DEVELOPMENT - THE CONTENT MAY REQUIRE EXTENSIVE EDITING

https://www.tomshardware.com/tech-industry/artificial-intelligence/openais-massive-stargate-data-center-canceled-as-firm-cant-reach-terms-with-oracle-operator-struggles-with-reliability-issues-meta-said-to-be-interested-in-snatching-excess-capacity [tomshardware.com]

Given the rising tensions between the Stargate partners, Crusoe began searching for another tenant, according to Bloomberg. At that point, Nvidia reportedly stepped in to help ensure the site would continue deploying its hardware rather than systems powered by AMD. Furthermore, Nvidia provided Crusoe with a $150 million deposit and assisted efforts to attract Meta — which is not a part of the Stargate project — as a prospective tenant for the additional capacity, the report says. Meanwhile, Meta has yet to confirm its expansion at the Abilene campus.

Despite shelving the expansion of one Stargate project, Oracle's general partnership with OpenAI remains unchanged. In July last year, Oracle agreed to develop 4.5 GW of data center capacity for OpenAI, and that program continues. The companies have also announced projects in other locations, including a site near Detroit owned by Related Digital.

*One gigawatt is comparable to the output of a nuclear reactor and can supply electricity to hundreds of thousands of homes at peak usage. That being said, a nuclear power plant was not reported to be a part of negotiations, which perhaps explains why locals were against increasing power capacity using things like coal or gas generators, yet we are speculating here.


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