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Oracle and OpenAI Abandon Stargate Texas Data Center Expansion Amid Financing Disputes; Meta Eyes the Site

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Stargate data center site in Texas representing the Oracle-OpenAI expansion collapse reported by Bloomberg

Oracle and OpenAI have scrapped plans to expand their flagship Stargate AI data center in Abilene, Texas, after financing negotiations broke down between the two companies, Bloomberg reported on March 6, 2026. The collapse of the expansion comes despite the Stargate initiative being announced in January 2026 by President Trump with a $500 billion investment pledge — the decision signals that the enormous Stargate capital commitments face real execution friction at the project level. Meta is reportedly in discussions to lease the expansion site that Oracle and OpenAI abandoned, which would give it large-scale GPU infrastructure in Texas at speed.

Key Takeaways

  • Oracle and OpenAI ended expansion plans for the Abilene, Texas Stargate data center after financing disputes; Bloomberg reported the collapse on March 6, 2026
  • Meta is reportedly in talks to lease the planned Stargate Texas expansion site — potentially providing Meta a fast path to major GPU compute capacity without building from scratch
  • Collapse contradicts the January 2026 Stargate announcement where Trump pledged $500B in US AI infrastructure spending; SoftBank is simultaneously seeking a $40B bridge loan to fund its OpenAI commitment

Original source: Bloomberg / Techmeme