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OpenAI’s Stargate project reportedly doesn’t have the money it needs

January 24, 2025 | by AI

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OpenAI’s Stargate Project: A $100 Billion Dream or a Funding Nightmare?

The $100 Billion Question: Can OpenAI’s Stargate Project Survive Without Funding?

OpenAI’s Stargate project — a moonshot initiative to build next-gen data centers for AI workloads — is hitting a major roadblock: money. According to a bombshell report from the Financial Times, the project lacks a fully developed plan and hasn’t secured the funding it needs to turn its $100 billion vision into reality. And let’s be real: when you’re talking about a project that could cost up to $500 billion, that’s a BIG problem.

Who’s Backing Stargate? (And Who’s Not)

Stargate has some heavy hitters in its corner, including OpenAI, SoftBank, and Middle East AI fund MGX. But here’s the kicker: SoftBank and OpenAI are only committing $15 billion each to start. That’s a drop in the bucket compared to the project’s ultimate price tag. The plan? Raise a mix of equity from existing investors and debt to bridge the gap. But with no concrete funding secured yet, the clock is ticking.

“Stargate doesn’t have the money it claims to have.”

Elon Musk, Billionaire and Head of Trump’s DOGE Advisory Commission

Elon Musk Throws Shade (Again)

Elon Musk, never one to shy away from controversy, has been vocal about his doubts. On social media, he’s criticized Stargate, claiming the project doesn’t have the financial backing it’s touting. His comments have reportedly ruffled feathers in the White House, despite former President Trump’s attempts to downplay the drama. Whether Musk’s criticism is justified or just another Twitter feud, it’s adding fuel to the fire.

What’s Next for Stargate?

Here’s the bottom line: Stargate is a bold, ambitious project that could redefine AI infrastructure. But without a solid funding plan, it risks becoming another “what could have been” story. OpenAI has yet to comment, but one thing’s clear: the stakes are sky-high, and the pressure is on.

  • Current Funding Gap: $70 billion+ (and counting)
  • Key Players: OpenAI, SoftBank, MGX
  • Biggest Critic: Elon Musk
  • What’s at Stake: The future of AI infrastructure

Will Stargate rise to the occasion and secure the funding it needs? Or will it crumble under the weight of its own ambition? Only time will tell, but one thing’s for sure: this is a story you’ll want to watch closely.

Image Credit: Nataliya Vaitkevich on Pexels

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