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● TRACKER Updated 7d ago · 50 sources tracked

Trump's Stargate AI Project in Huge Trouble As $18 Billion Data Center Shrivels Toward Oblivion

President Donald Trump's promoted infrastructure initiatives encounter fresh obstacles as financial backing adjusts. OpenAI reduced its funding round to $20 billion, supported by United Arab Emirates investors such as MGX alongside provisions for Gulf data center capacity and limits set by Washington. Meanwhile, administration officials advocating for data center placement on public lands face scrutiny over personal investments within the artificial intelligence sector, highlighting potential conflicts of interest as the White House backs heavy digital infrastructure expansion.

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  • ✓ UAE investors including MGX are the largest backers of an OpenAI funding round that was cut to $20 billion.
🛡️ Source Corroboration: 50 independent reporting domains (85% confidence) ⏱ Read time: ~2 min

What changed

UAE-backed investors reduced OpenAI's funding round to $20 billion alongside provisions for Gulf data center capacity.

Live updates

  1. Trump AI Infrastructure Push Faces Hurdles As Funding Rounds Shift

    President Donald Trump's promoted infrastructure initiatives encounter fresh obstacles as financial backing adjusts. OpenAI reduced its funding round to $20 billion, supported by United Arab Emirates investors such as MGX alongside provisions for Gulf data center capacity and limits set by Washington. Meanwhile, administration officials advocating for data center placement on public lands face scrutiny over personal investments within the artificial intelligence sector, highlighting potential conflicts of interest as the White House backs heavy digital infrastructure expansion.

    Why it matters

    The broader federal push for artificial intelligence infrastructure involves massive capital investments and joint ventures across the United States, including a planned facility in Abilene, Texas. These projects have previously faced scrutiny over environmental impacts, resource consumption, and the realism of their financial targets. The involvement of administration officials with direct stakes in the technology industry adds political tension to regulatory decisions surrounding public land usage.

    What is confirmed

    • UAE investors including MGX are the largest backers of an OpenAI funding round that was cut to $20 billion.

    Still unconfirmed

    • Trump administration officials who support building data centers on public lands are invested in the artificial intelligence industry.

    What to watch next

    • Decisions by Washington regarding limits on Gulf data center capacity
    • Further federal policy actions on placing data centers on public lands
    Sources used for this update (2)
    1. finance.yahoo.com — OpenAI Cuts Round To $20 Billion As UAE Investors Pair ...
    2. truthout.org — Trump Official Who Wants Data Centers on Public Lands Is Invested in AI Industry
    confidence 85%

  2. Trump's $18 Billion Stargate AI Project in Trouble

    The Stargate AI project, a $500 billion infrastructure investment promoted by President Donald Trump, is facing significant challenges. The project, a joint venture with Oracle and Softbank, aims to build multiple AI data centers across the US, including a large center in Abilene, Texas. However, concerns about environmental impact, local resources, and funding viability have been raised. The project's financial viability has been questioned, with some experts suggesting that investment claims may be inflated.

    Why it matters

    The US artificial intelligence data center boom is facing increased debt risks as construction costs rise and projects stall. Global AI debt issuance has fallen to $23 billion, and a predicted 32-gigawatt power deficit by 2028 threatens the broader infrastructure market. The Stargate project's struggles reflect the challenges facing the industry, including rising bond yields and record costs to insure debt.

    What is confirmed

    • The Stargate AI project is a joint venture with Oracle and Softbank.
    • The project aims to build multiple AI data centers across the US, including a large center in Abilene, Texas.
    • Global AI debt issuance has fallen to $23 billion.
    • A predicted 32-gigawatt power deficit by 2028 threatens the broader infrastructure market.

    Still unconfirmed

    • The Stargate project's financial viability has been questioned, with some experts suggesting that investment claims may be inflated.

    What to watch next

    • The outcome of OpenAI's request for proposals for new Stargate AI data center locations
    • The impact of rising bond yields on AI cloud providers such as CoreWeave
    • The response of investors to the massive AI infrastructure buildout and its funding
    Sources used for this update (11)
    1. www.theverge.com — All the latest updates on AI data centers - The Verge
    2. www.cnn.com — Donald J. Trump news | CNN Politics
    3. www.computeforecast.com — The Data Center Backlash in the United States: A Crisis of ...
    4. www.newsweek.com — Trump Shifts Approach to Data Centers as Political Backlash ...
    5. futurism.com — There Are Signs of Serious Trouble in the Data Center Industry
    6. www.krgv.com — OpenAI shows off Stargate AI data center in Texas and plans 5 ...
    7. spectrumlocalnews.com — OpenAI looks for sites to build Stargate AI data centers
    8. economictimes.indiatimes.com — MICROSOFT STARGATE DATA CENTER WATER CONSUMPTION
    9. www.cbsnews.com — Iran War Updates: Qatar pushes for U.S.-Iran deal under shadow of Trump's threats to resume attacks
    10. www.wionews.com — Musk ridicules funding viability of Trump's $500 billion AI ...
    11. www.sbs.com.au — 'Lightning in a bottle': The unlikely election issue aligning ...
    confidence 70%

  3. US AI Data Center Projects Stall Amid Rising Debt Risks

    The US artificial intelligence data center boom is facing increased debt risks as construction costs rise and projects stall. Global AI debt issuance has fallen to $23 billion. These financial pressures coincide with the collapse of Oracle and OpenAI expansion plans in Texas and ongoing disputes over a New Mexico project. While Oracle continues to secure cloud contracts, its cash spending exceeds its revenue generation. These failures occur against a backdrop of a predicted 32-gigawatt power deficit by 2028 that threatens the broader infrastructure market.

    Why it matters

    The Stargate project represents a massive attempt to build AI compute capacity. Persistent financing gaps and power shortages make it difficult for firms to compete with tech giants. Current instability in debt markets complicates the funding of these high-cost facilities.

    What is confirmed

    • Global AI debt issuance has fallen to $23 billion.
    • Oracle and OpenAI canceled expansion plans at a Texas site.

    Still unconfirmed

    • Donald Trump claims he is a sufficient guardrail against rogue artificial intelligence.
    • A 32-gigawatt power deficit is predicted by 2028.

    What to watch next

    • Resolution of financing and construction disputes for the New Mexico project
    • New compute capacity partnerships for OpenAI
    • Updates on Oracle cash flow and revenue ratios
    Sources used for this update (3)
    1. spectrumlocalnews.com — Trump dismisses new AI guardrails - Spectrum News
    2. coinedition.com — U.S. AI Data Center Projects Stall as Debt Risks Grow
    3. stargate.how — Stargate LLC - AI Project Tracker
    confidence 80%

  4. Oracle and OpenAI Scale Back Stargate AI Infrastructure Plans

    Oracle and OpenAI have dropped plans for an expansion at a Texas site and are facing financing and construction disputes regarding a separate New Mexico project. While Oracle continues to sign large cloud infrastructure contracts, the company is spending cash faster than it generates revenue. These setbacks occur as OpenAI seeks compute capacity from other partners. Meanwhile, a 32-gigawatt power deficit is predicted by 2028, threatening the broader AI infrastructure market and the ability of smaller firms to compete with tech giants.

    Why it matters

    The Stargate project is a massive AI data center initiative backed by Oracle and OpenAI. President Trump recently announced the initial phase of the project is located at the 1.2GW Lancium Clean Campus in Abilene, Texas.

    Still unconfirmed

    • Oracle and OpenAI dropped plans for an additional expansion at a Texas site.
    • A New Mexico project is facing a financing and construction dispute.
    • OpenAI is securing compute capacity through other partners.
    • The Lancium Clean Campus in Abilene, Texas, is the home of the initial phase of the Stargate Project.
    • Morgan Stanley predicts a 32-gigawatt power deficit by 2028.
    • Oracle is spending cash faster than its revenue is coming in.

    What to watch next

    • Official confirmation of OpenAI's partnership status with Oracle.
    • Resolution of the New Mexico financing dispute.
    • Updates on US power grid capacity for AI data centers.
    Sources used for this update (3)
    1. www.mayhemcode.com — Is Oracle's Stargate AI Plan in Trouble? - mayhemcode.com
    2. economictimes.indiatimes.com — stargate project ai data centres: Latest News & Videos ...
    3. thetechcapital.com — Exclusive: 1.2GW Lancium Clean Campus confirmed as home of ...
    confidence 60%

  5. Trump's Stargate AI Project Faces Delays and Uncertainty

    The Stargate AI project, a massive data center initiative backed by Oracle and OpenAI, is facing significant challenges, including delays, financing issues, and concerns over its viability. The project's $18 billion data center in New Mexico has been impacted by energy supply delays, site flooding, and internal layoffs at Oracle. The UAE is also revising plans for its own 5-gigawatt AI data center project due to security concerns.

    Why it matters

    The Stargate project is a critical infrastructure initiative aimed at supporting the development of artificial intelligence. The project's success is crucial for the growth of AI capabilities, but it faces significant challenges, including financing issues, regulatory hurdles, and concerns over its environmental impact. The project's delays and uncertainty have raised questions about its viability and the ability of companies like Oracle and OpenAI to deliver on their ambitious plans.

    What is confirmed

    • Oracle issued a force majeure notice on September 24, 2026, for its 2.45-GW Project Jupiter Stargate data center in New Mexico due to energy supply delays.
    • The Stargate project's data center will be located on 875 acres near Abilene, Texas.
    • OpenAI's Stargate data center project in New Mexico is expected to host an estimated 5,104k H100-equivalents of AI chips by Q4 2028.
    • The AI data center buildout is projected to total $10.3 trillion from 2025 to 2032.

    Still unconfirmed

    • OpenAI halted its Stargate UK project, casting uncertainty over Britain's AI expansion plans.
    • Microsoft's Stargate facility used over 460 million gallons of water as local families face restrictions.

    What to watch next

    • Oracle's Q4 2026 earnings report for updates on Project Jupiter
    • OpenAI's announcements on Stargate data center developments
    • Regulatory decisions on AI data center infrastructure investments
    Sources used for this update (12)
    1. www.thedailystar.net — UAE rethinks billion dollar AI data centre project after Iran ...
    2. thearabianpost.com — Abu Dhabi’s Stargate to Become World’s Largest AI Data Hub
    3. spectrumlocalnews.com — Stargate's first data center to be built in Texas - Spectrum News
    4. epoch.ai — OpenAI Stargate New Mexico | AI data centers | Epoch AI
    5. finance.yahoo.com — AI Data Center Delays Raise New Questions For ORCL, BE And ...
    6. startupfortune.com — Masayoshi Son warns superintelligence could turn super ...
    7. aitechmodel.com — Oracle and OpenAI Data Center Economics: How Money, Compute ...
    8. indiawest.com — Satya Nadella Criticizes Stargate AI Venture Despite Microsoft
    9. thaitimes.com — Texas Residents Face Water Restrictions While AI Data Centers ...
    10. www.brookings.edu — The $10 trillion question: Financing the AI buildout - Brookings
    11. londondaily.com — OpenAI UK Investment Uncertainty Grows After Reported Setback ...
    12. londondaily.com — OpenAI Halts Stargate UK Project, Casting Uncertainty Over ...
    confidence 85%

  6. Oracle Project Jupiter Stargate Faces Energy Delays and Financial Pressure

    Oracle issued a force majeure notice on September 24, 2026, for its 2.45-GW Project Jupiter Stargate data center in New Mexico. The company attributes the notice to energy supply delays. Oracle maintains the project is on schedule despite site flooding, but the legal move protects the company from costs and delays. This occurs as Oracle faces internal layoffs in NetSuite sales and OCI security, alongside broader AI infrastructure pressures caused by rising Treasury yields.

    Why it matters

    The $18 billion project represents a massive investment in AI infrastructure. Force majeure clauses allow companies to avoid penalties when unforeseeable circumstances prevent them from fulfilling a contract. These technical and financial hurdles coincide with political volatility surrounding President Trump.

    What is confirmed

    • Oracle issued a force majeure notice for the 2.45-GW Project Jupiter Stargate data center on September 24, 2026.
    • The Project Jupiter Stargate data center is located in New Mexico.
    • Oracle cited energy supply delays as the reason for the force majeure notice.

    Still unconfirmed

    • Rising Treasury yields are creating financial pressures on AI infrastructure.

    What to watch next

    • Official response from Oracle regarding the impact of site flooding on the construction timeline
    • House action on the 26 articles of impeachment introduced against President Trump
    Sources used for this update (2)
    1. time.com — Fact-Checking What Donald Trump Said in His 2026 Interview ...
    2. www.newsweek.com — Donald Trump Hit With 26 Articles Of Impeachment - Newsweek
    confidence 90%

  7. Oracle Triggers Force Majeure for Project Jupiter Stargate AI Site

    Oracle issued a force majeure notice on September 24, 2026, for its 2.45-GW Project Jupiter Stargate data center in New Mexico. The company cited energy supply delays as the cause for the notice. While Oracle claims the project remains on schedule despite site flooding, the move shields the company from costs and delays. This development coincides with broader financial pressures on AI infrastructure due to spiking Treasury yields and reported internal layoffs at Oracle affecting OCI security and NetSuite sales staff.

    Why it matters

    The Stargate project represents an 18 billion dollar investment in AI computing capacity. Its viability is critical for Oracle's ability to deliver promised infrastructure in a competitive AI market. Rising bond yields are increasing the cost of such capital-intensive buildouts.

    What is confirmed

    • Oracle issued a force majeure notice on September 24, 2026, for the 2.45-GW Project Jupiter Stargate data center in New Mexico.
    • The Project Jupiter site is located in New Mexico.
    • The Stargate AI data center project has a valuation of 18 billion dollars.

    Still unconfirmed

    • Spiking Treasury yields are increasing risks for debt-hungry AI infrastructure companies.

    What to watch next

    • Confirmation of the project's revised completion date
    • Official statements regarding the status of energy supply contracts in New Mexico
    • Further disclosures on Oracle's internal staffing levels and OCI security budgets
    Sources used for this update (12)
    1. www.theguardian.com — Donald Trump - The Guardian
    2. www.cnbc.com — Debt-hungry AI companies face increased risk as bond yields spike
    3. www.whitehouse.gov — President Donald J. Trump - The White House
    4. en.wikipedia.org — Donald Trump - Wikipedia
    5. www.whitehouse.gov — Trump TV – The White House
    6. finance.yahoo.com — Oracle's $18 Billion AI Data Center Just Dodged a Major ...
    7. digitalmarketreports.com — Oracle Issues Force Majeure Notice for New Mexico Stargate ...
    8. best-ai.org — Oracle Triggers Force Majeure on 2.45-GW Stargate Data Center ...
    9. www.newsweek.com — Trump’s Home County Halts Data Centers Amid President’s AI ...
    10. economictimes.indiatimes.com — stargate project: Latest News & Videos, Photos about stargate ...
    11. www.theguardian.com — ‘Trump? I think he’s a disaster’: Ohio voters aggrieved as president prepares to visit | Ohio
    12. es.wikipedia.org — Donald Trump - Wikipedia, la enciclopedia libre
    confidence 80%

  8. Oracle's $18 Billion Stargate AI Data Center Project Hits Force Majeure

    Oracle's massive $18 billion Stargate AI data center project in New Mexico is facing significant delays and financial uncertainty. The company has issued a 'force majeure' notice to shield itself from potential costs and delays. This development has raised concerns about the project's viability and Oracle's ability to deliver on its promised computing capacity.

    Why it matters

    The Stargate AI project is a key part of Donald Trump's AI megaproject, aiming to create a massive AI data center campus. Oracle has secured about $18 billion in loans for the project, which could face a roughly one-year delay. The project's challenges have implications for the broader AI infrastructure and financing landscape.

    What is confirmed

    • Oracle's Project Jupiter data center in New Mexico is facing delays and financial uncertainty.
    • The project has secured about $18 billion in loans.
    • Oracle's 'force majeure' notice aims to shield the company from potential costs and delays.
    • The project's delays have raised concerns about Oracle's ability to deliver on its promised computing capacity.

    Still unconfirmed

    • The project could face a roughly one-year delay.

    What to watch next

    • Oracle's stock performance in response to the 'force majeure' notice
    • Updates on project financing and construction timeline
    • Regulatory decisions on permits and environmental concerns
    Sources used for this update (23)
    1. Bloomberg — Oracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center
    2. CNBC — Oracle shares drop on report it sent 'force majeure' notice about data center project
    3. Reuters — Oracle cites ‘force majeure’ to shield itself on data center, Bloomberg News reports
    4. Reuters — Oracle, Blue Owl project delay sends ripples through AI financing, sources say
    5. WSJ — Cracks in Oracle’s AI Data-Center Build-Out Appear in Massive New Mexico Project
    6. Axios — The AI borrowing binge is back in the spotlight
    7. Semafor — View / AI’s financial Jenga towers start to wobble
    8. Yahoo Finance — Oracle’s Collapse–$200 Billion In Data Center Shut Downs
    9. Bloomberg.com — Oracle Notice to Weigh on Data Center Debt, Morgan Stanley Says
    10. Futurism — Trump's Stargate AI Project in Huge Trouble As $18 Billion Data Center Shrivels Toward Oblivion
    11. CNBC — Oracle sends 'force majeure' notice about data center project — stock drops 3%
    12. www.tekedia.com — Oracle’s Stargate Data Center Faces Delay Risk as Force Majeure Notice Raises AI Infrastructure Concerns
    confidence 85%
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