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OpenAI’s Stargate project reportedly struggling to get off the ground, thanks to tariffs

May 12, 2025 | by AI

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OpenAI’s Stargate Project HITS A WALL: How Tariffs Are CRUSHING The $500M AI Dream

The AI Revolution Just Got EXPENSIVE

OpenAI’s Stargate – the moonshot project that was supposed to supercharge global AI infrastructure – is running into a BRUTAL reality check. According to explosive Bloomberg reports, economic headwinds and tariff wars are making investors sweat bullets.

“This isn’t just a speed bump – it’s a full-scale roadblock for AI’s infrastructure revolution.”

Market Analyst, TD Cowen

Why The Cold Feet? Three NUCLEAR Problems:

  • Tariff Tsunami: Those 5-15% cost spikes on server racks and chips? They’re turning data center budgets into ticking time bombs
  • Investor Jitters: Big money players like SoftBank are dragging their feet when they should be writing checks
  • Overcapacity Fears: Even tech titans Microsoft and Amazon are hitting pause on construction – and THAT should terrify you

The Stargate Standstill: What’s REALLY Happening

Let’s cut through the corporate speak: SoftBank promised the moon in January, but right now they can’t even agree on a financing TEMPLATE. Meanwhile, every tariff announcement sends construction costs spiraling higher.

Here’s the KILLER STAT: TD Cowen’s analysis shows cooling systems alone could cost 15% more by Q3. That’s not inflation – that’s economic WARFARE against AI progress.

Wake-Up Call For The AI Industry

This isn’t just about one project. When the smart money gets cold feet on infrastructure, the ENTIRE AI ecosystem feels the chill. The question isn’t IF Stargate will launch – it’s whether ANYBODY can build next-gen AI infrastructure in this economic minefield.

One thing’s certain: The AI arms race just got a LOT more expensive. And the clock is TICKING.

Image Credit: SpaceX on Pexels

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