OpenAI's Stargate Data Center Project Delayed Amidst Tariff Uncertainty and Market Volatility

OpenAI's ambitious Stargate data center project is facing delays due to economic uncertainty stemming from tariffs and growing market volatility. Cheaper AI services have made banks, private equity firms, and asset managers hesitant to invest in the project, which aims to raise up to $500 million for AI infrastructure. SoftBank, initially a major backer, hasn't finalized financing plans or engaged in detailed discussions with potential investors. Tariffs are expected to significantly increase data center construction costs, with estimates suggesting a 5-15% rise in overall build costs due to increased prices for server racks, cooling systems, and other components. Further complicating matters is a growing concern of overcapacity, as tech giants like Microsoft and Amazon adjust their data center strategies, potentially scaling back on construction projects.