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OpenAI and Oracle are reportedly abandoning the TX Stargate extension

OpenAI and Oracle are reportedly abandoning the TX Stargate extension

By Tobias Mann
Publication Date: 2026-03-07 00:51:00

OpenAI and computing partner Oracle have reportedly abandoned a planned expansion of their flagship Stargate data center after negotiations were stalled by funding and Sam Altman’s apparent fear of commitment.

This scuttlebutt comes courtesy of Bloombergwhich cites sources familiar with the matter as claiming that Oracle and OpenAI planned to expand the capacity of the Abilene, Texas, facility to up to 2 gigawatts from the 1.2 gigawatt campus currently under development.

The cavitations responsible for the plan’s failure were attributed to a combination of funding and OpenAI’s inability to effectively predict demand.

Meta is now reportedly in the running to lease the unused and unbuilt capacity from website developer Crusoe after Nvidia stepped in to broker a deal.

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