OpenAI’s Obsession With Data Centers Is Running Into Trouble

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In January 2025, just one day after Donald Trump’s second inauguration, AI tech leaders convened in the Oval Office as part of the announcement of a flashy $500 billion AI infrastructure deal, dubbed “Stargate.”

OpenAI CEO Sam Altman gushed over his newfound adoration for Trump, telling him during the event that “for AGI to get built here, we wouldn’t be able to do this without you, Mr. President.”

The company said it was committing $100 billion immediately, sparking a heated debate over whether it had secured the necessary financing with Elon Musk, founder of competitor xAI, who was notably absent from the proceedings.

Over a year later, OpenAI has dramatically reined in its ambitions as reality continues to settle in. For one, its astronomical commitments to spending $1.4 trillion before the end of the decade on AI infrastructure was recently more than halved to a still-hefty $600 billion. Meanwhile, panicked executives are looking to cut out any distracting “side quests” to double down on enterprise and coding, two areas potentially capable of generating some desperately-needed revenue.

The company’s remaining ambitions to secure computing power have landed it between a rock and a hard place — without more compute, the company could risk falling further behind the competition. On the other hand, attempts to secure more of the resource could balloon its spending even further, potentially scaring investors.

Ahead of its rumored IPO, pressure continues to mount over the company’s calamitous finances. As a result, as CNBC reports, OpenAI has started to sing a dramatically different tune compared to early 2025.

“OpenAI has come to the realization that the market doesn’t necessarily appreciate the reckless approach to growth and spending,” Futurum Group CEO Daniel Newman…

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