Oracle and OpenAI canceled plans to expand a major artificial intelligence data center in Texas. The expansion was a component of the Stargate project.
Negotiations stalled following financing disputes and changes in OpenAI’s strategic requirements. Investors have raised concerns over Oracle’s increasing debt levels used to fund large-scale AI infrastructure.
Meta Platforms is reportedly considering leasing the site originally intended for the expansion. Meta is currently investing billions of dollars in infrastructure to secure data center capacity for AI development.