Oracle and OpenAI have reportedly cancelled plans to expand a major artificial intelligence data center in Abilene, Texas. The expansion was part of the Stargate initiative, a massive project valued at up to US$ 500 billion and designed to generate 10 GW of computing power.
Stargate involves Oracle, OpenAI, and SoftBank Group and was first announced by U.S. President Donald Trump in January 2025. No official announcement as to the scrapping or downsizing of the project have been made so far by any party involved. However, Bloomberg News reported, citing unnamed people familiar with the project that talks stalled over financing and OpenAI’s shifting requirements.
The collapse of the expansion talks opened the door for Meta Platforms to explore leasing the Abilene site from developer Crusoe. OpenAI and Nvidia did not immediately respond to requests for comment.
In September, Oracle and OpenAI had revealed intentions to add up to 600 MW of capacity near the Abilene site. That planned capacity will now be deployed at one of the other Stargate campuses under construction as reported by Reuters, although these new campuses have yet to be announced.
The Abilene facility currently includes eight buildings managed by Oracle Cloud Infrastructure, with two already operational. The broader goal of adding 4.5 GW of capacity across other sites reportedly remains on track.
Nvidia reportedly facilitated the discussions to ensure its AI chips, rather than those from Advanced Micro Devices, would power the new center. Oracle and OpenAI use Nvidia semiconductors at the existing Stargate site.