OpenAI's Stargate data center initiative is struggling to secure funding amid concerns over tariffs and the volatility of the AI market. Banks and other investors are hesitant to commit due to the potential for rising costs, which TD Cowen estimates could increase build costs by 5-15%. The reduced interest from major players such as SoftBank, which hasn't moved forward with financing discussions, adds to worries about the project's viability in the context of recent strategic shifts in data center construction by tech giants like Microsoft and Amazon.
OpenAI's Stargate data center project is encountering delays due to tariff-related economic uncertainties, raising concerns for potential investors.
Investors' apprehensions about current market volatility and the increasing availability of cheaper AI services are impacting fundraising efforts for Stargate.
Rising tariffs threaten to inflate data center construction costs by 5-15%, according to TD Cowen's analysis.
Major tech companies like Microsoft and Amazon are reevaluating their data center expansions, contributing to investors' fears of overcapacity in the market.
#ai-infrastructure #investment-challenges #tariff-impact #data-center-construction #market-volatility
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