Reports have surfaced that Oracle and OpenAI have halted their plan to expand the flagship Stargate datacenter due to financing issues and OpenAI’s inability to accurately predict demand. The planned expansion would have increased the facility’s capacity from 1.2 gigawatts to 2 gigawatts.

Bloomberg, citing internal sources, indicated that the deal fell through primarily due to financial hurdles and OpenAI’s demand forecasting challenges. This has left the door open for Meta, which is reportedly eyeing the unutilized capacity with a deal facilitated by Nvidia.

Nvidia has already placed a $150 million deposit on the pending capacity and has approached Meta to discuss potential collaboration. However, formal confirmations from the involved parties remain unavailable as Crusoe, the site’s developer, declined to comment on the situation.

Despite these setbacks, OpenAI’s original aim of deploying 4.5 gigawatts of computing power remains intact, with Oracle estimating the project’s value to be $300 billion throughout its lifespan. Oracle is advancing its fundraising efforts, proposing to secure $50 billion in debt and equity to stay on course with its ambitious plans.

Meanwhile, Meta is aggressively seeking additional datacenter capacity. CEO Mark Zuckerberg has committed up to $135 billion in capital expenditure this year to boost GPU capabilities.

The shifting landscape of datacenter expansion underscores the competitive environment among hyperscalers. The top industry players, including Meta, are projected to collectively invest $710 billion in infrastructure and technology assets within 2026 alone. While these developments may alter Oracle’s and OpenAI’s immediate plans, they still have avenues for growth in response to parallel funding opportunities from Nvidia, SoftBank, and Amazon.