SoftBank has acknowledged delays in its ambitious $500 billion Stargate project with OpenAI, citing difficulties in reaching agreements with key partners such as Oracle and Abu Dhabi's MGX. This marks the first time SoftBank has conceded that the AI collaboration is behind schedule. The company expects to begin concrete negotiations for its first Stargate data centre site soon.
SoftBank's CFO, Yoshimitsu Goto, stated that more time is needed to prepare a model case for Stargate, given the involvement of multiple parties. The project, unveiled in January, aimed for immediate deployment of $100 billion, eventually scaling to $500 billion. However, fundraising and data centre construction are yet to commence.
Market volatility, uncertainties in US trade policies, and questions surrounding AI hardware valuations have contributed to the slowdown. SoftBank is also reportedly seeking partnerships with companies like TSMC for a potential $1 trillion AI manufacturing hub in Arizona. Despite the delays, SoftBank's recent earnings have been positive, driven by gains from investments in Nvidia and other startups.
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