Two technology powerhouses have pulled out of plans to expand a major artificial intelligence facility in Texas following prolonged discussions about funding and shifting operational requirements, according to a Bloomberg News report released Friday.
Oracle and OpenAI were working to grow their AI data center as part of the Stargate initiative, a collaborative effort involving SoftBank, OpenAI, and Oracle focused on constructing data facilities. President Donald Trump announced this ambitious project in January, stating the participating companies planned to commit as much as $500 billion toward AI infrastructure development.
While the existing facility continues operating and construction work proceeds on current sections, Oracle and OpenAI have chosen not to proceed with preliminary agreements to lease additional space for expansion, according to the report.
The breakdown in discussions has created an opportunity for Meta Platforms to potentially secure the expansion space in Abilene, Texas, from developer Crusoe. Nvidia played a role in facilitating these new negotiations.
Both Oracle and OpenAI rely on Nvidia’s artificial intelligence chips at their Stargate location. The semiconductor company intervened to ensure its technology, rather than products from rival Advanced Micro Devices, would power the enlarged data center, the report indicated.
Nvidia has committed $150 million as a deposit to Crusoe and began efforts to bring Meta on board as a tenant for the expanded facility, Bloomberg News stated.
Representatives from Oracle, OpenAI, and Meta have not yet provided responses to requests for comment.
The three companies originally announced intentions to establish five additional AI data centers across the United States for the Stargate project in September. These facilities include three locations partnering with Oracle, two connected to SoftBank, and the proposed expansion of Oracle’s Abilene site.
