Oracle and OpenAI have dropped their plan to expand a flagship artificial intelligence data center in Texas after prolonged negotiations over financing and changes in OpenAI’s requirements, Bloomberg News reported. The expansion was part of the Stargate initiative, a project valued at up to $500 billion and 10 gigawatts that also involves SoftBank Group. The initiative was announced by U.S. President Donald Trump in January 2025.

The companies had earlier proposed adding 600 megawatts of capacity near the Stargate site in Abilene, Texas, but that capacity will now be developed at another data center campus. The Abilene site includes eight buildings operated by Oracle Cloud Infrastructure, with two already operational. Despite the canceled expansion, Oracle and OpenAI’s broader plan to develop 4.5 gigawatts of data center capacity remains on schedule.

Following the collapse of talks, Meta Platforms is reportedly considering leasing the planned expansion site from developer Crusoe, with Nvidia helping facilitate discussions to ensure its AI chips are used at the facility.