$500-Billion Stargate Project Reduced to Mini Data Center

At the very start of his second term, U.S. President Donald Trump announced the ambitious AI infrastructure initiative “Stargate.” However, there is still no trace of the $500 billion investment he cited – and the promised jobs have yet to materialize.

Just one day after being sworn in as the 47th U.S. president, Donald Trump unveiled an ambitious AI infrastructure project. Stargate was meant to serve the entire world with $500 billion in investments. The EU promptly responded – more or less successfully – with its own multi-billion-euro funding packages aimed at AI gigafactories in Europe.

Since the grand announcement of this American AI megaproject – backed by OpenAI, Oracle, and SoftBank – things have gone quiet. Elon Musk, who co-founded OpenAI but later left the company, has recently thrown cold water on the plan: “They don’t even have the money for it right now,” reports t3n.

His remarks were dismissed as the envious jab of an OpenAI rival, given that Musk is currently pushing his own AI ambitions through xAI, a startup under his SpaceX umbrella, aiming to compete directly with OpenAI’s ChatGPT.

Money Is Just One of the Missing Pieces

According to the Wall Street Journal (WSJ), citing an anonymous source, not much has happened even six months after Trump’s announcement – not a single contract has been finalized.

Despite bold proclamations, funding for “Stargate” remains uncertain. (Image source: Unsplash / Scott Rodgerson)

There’s also likely no truth to the claim of immediate funds amounting to $100 billion. Musk quipped that SoftBank, as the supposed financial backer, only has around $10 billion available.

The WSJ report also notes uncertainty regarding potential locations for the planned AI data centers. OpenAI and SoftBank reportedly haven’t reached an agreement yet. According to t3n, on July 22, 2025 – exactly six months after the project’s launch – OpenAI merely stated it was “moving quickly on site evaluations” with SoftBank and developing “new data center concepts” to advance “cutting-edge AI.”

At Least One Data Center Is in the Works

As things currently stand – and according to Gizmodo, citing insiders – there is at least a small glimmer of progress: a mini data center is slated for completion in Ohio by the end of 2025. However, this facility will consume only a tiny fraction of the promised $500 billion.

Larger AI data centers may also be hindered by insufficient energy infrastructure. Consequently, all major U.S. tech giants – including hyperscalers, internet providers, and chipmakers – are planning to either build their own power plants or invest in existing or upcoming ones. Their strategies increasingly rely on nuclear power and emerging technologies like small modular reactors and nuclear fusion.

Header Image Source: Unsplash / Petr Magera