The $500 billion Stargate AI data center project, a joint venture between OpenAI, Oracle, and SoftBank announced in January 2025, remains stalled over a year later due to ongoing disputes among partners regarding site ownership, system control, and financial responsibilities, with no staff hired or facilities actively developed under the initiative.

OpenAI has pivoted to bilateral deals, such as a 4.5-gigawatt capacity agreement with Oracle in July 2025, as the original joint venture fails to deliver promised compute power amid these delays. Despite strong revenue growth - reaching $13.1 billion in 2025 - OpenAI continues to face severe profitability challenges, with internal projections indicating up to $14 billion in losses for 2026 and cumulative cash burn potentially exhausting reserves by mid-2027 without additional funding.

The Stargate setbacks exacerbate OpenAI's high compute costs, highlighting the tension between massive infrastructure ambitions and the company's path to sustainable profitability.