OpenAI and Oracle have reportedly abandoned plans to expand their Texas Stargate datacenter beyond its current 1.2 gigawatt capacity. The expansion to 2 gigawatts stalled due to financing challenges and OpenAI's difficulty forecasting demand. Meta is now positioned to lease the unused capacity after Nvidia brokered the deal with a $150 million deposit. Despite this setback, OpenAI's original $500 billion Stargate initiative with Oracle remains intact, with Oracle raising $50 billion in debt and equity to support datacenter expansion. The move reflects intense competition for compute capacity as hyperscalers race to secure GPU infrastructure for artificial intelligence development and deployment.
