"The Bloomberg report delivered the first crack in the Stargate narrative. It revealed that Oracle and OpenAI have quietly scrapped tentative plans to lease a large expansion at their flagship 1,000-acre AI data center campus in Abilene, Tex. The site - developed by Crusoe Energy and publicly unveiled last year at the White House alongside President Donald Trump - had been billed as a centerpiece of the AI computing boom."
"Crucially, the core July agreement for Oracle to develop 4.5 gigawatts of dedicated data center capacity for OpenAI remains fully intact and on schedule. Construction at the Abilene campus continues, with multiple sections already operational and running on Nvidia AI semiconductors. Still, the shelved expansion has created an immediate opening for Meta Platforms to step in as a potential tenant, with Nvidia actively facilitating discussions."
Oracle announced a $500 billion data center project in Texas with major AI partners, positioning it as transformative for cloud business and AI infrastructure. The Stargate initiative faced questions about Oracle's financials and debt, but Wall Street viewed it as a significant growth opportunity. However, a recent report revealed that Oracle and OpenAI quietly scrapped plans to expand their flagship 1,000-acre AI data center campus in Abilene, Texas. Negotiations over financing terms and OpenAI's changing compute needs led both parties to abandon the additional capacity. The core July agreement for 4.5 gigawatts of dedicated capacity remains fully intact and on schedule, with construction continuing and sections already operational. The shelved expansion has created an opportunity for Meta to potentially become a tenant.
Read at 24/7 Wall St.
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