Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home Themes AI

SoftBank’s $100 Billion Stargate AI Project Faces Delays Amid Tariff and Market Uncertainty

by Team Lumida
May 12, 2025
in AI
Reading Time: 4 mins read
A A
0
OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

"Dota2 OpenAI戰隊打敗人類原因曝光 AI還是靠「作弊」取勝" by steamXO is licensed under CC PDM 1.0

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways:

Powered by lumidawealth.com

  • SoftBank’s ambitious $100 billion Stargate AI infrastructure project, launched with OpenAI, is facing delays due to tariff concerns, rising costs, and market volatility.
  • Financing talks with major lenders and asset managers have stalled as fears of overcapacity and global recession weigh on investor confidence.
  • Tariffs on key components like server racks and chips could increase data center costs by 5% to 15%, further complicating project economics.
  • Despite challenges, SoftBank remains optimistic about long-term AI demand, projecting 15%-20% returns on a $50 billion investment over five to six years.

What Happened?

SoftBank’s Stargate project, a $100 billion initiative to build AI-focused data centers in the US, has hit financing roadblocks. Announced in January by SoftBank founder Masayoshi Son and OpenAI co-founder Sam Altman, the project aimed to deploy funds immediately and scale to $500 billion over time. However, discussions with lenders and asset managers, including Mizuho, JPMorgan, and Brookfield, have stalled due to economic risks tied to tariffs and fears of overcapacity in the data center market.

Tariffs on critical components like chips and cooling systems, imposed under President Trump’s trade policies, could raise data center costs by 5% to 15%, according to analysts. Meanwhile, competition from cheaper AI models, such as those from Chinese startup DeepSeek, and slowing growth in cloud infrastructure spending by companies like Microsoft and Amazon, have added to investor hesitation.


Why It Matters?

The delays in Stargate highlight the challenges of scaling AI infrastructure amid geopolitical and economic uncertainty. Tariffs and rising capital costs are squeezing margins, while fears of overcapacity in the data center market are dampening investor enthusiasm. These issues could slow the rollout of critical AI infrastructure, potentially impacting the broader adoption of AI technologies.

For SoftBank, Stargate represents a high-stakes bet on the exponential growth of AI demand. The project’s success is crucial for maintaining its reputation as a leader in large-scale tech investments. However, the delays underscore the difficulty of executing mega-projects in a volatile economic environment.


What’s Next?

SoftBank is expected to continue courting investors while addressing concerns about tariffs and overcapacity. Key developments to watch include the progress of Stargate’s first data center in Abilene, Texas, which is being developed by Oracle and is set to become the world’s largest AI training facility.

Investors should also monitor SoftBank’s ability to secure financing for future projects, as well as the impact of tariff negotiations on data center costs. Additionally, the competitive landscape, including the emergence of alternative AI models and shifts in cloud infrastructure spending, will play a critical role in shaping Stargate’s trajectory.

Source
Previous Post

Low-Income US Families Struggle as Earnings Fall Short of Rising Living Costs

Next Post

Gold Drops 3% as US-China Tariff Deal Boosts Dollar and Eases Safe-Haven Demand

Recommended For You

Waymo Hits 10 Million Rides, Leading the Driverless Revolution

by Team Lumida
17 hours ago
a car that is driving down the street

Key Takeaways: Powered by lumidawealth.com Waymo, Google’s autonomous taxi service, has surpassed 10 million paid rides, with exponential growth expected to reach 20 million by the end of 2025....

Read more

EssilorLuxottica Acquires AI-Driven Ophthalmology Platform Optegra to Expand Medical Technology Portfolio

by Team Lumida
2 days ago
EssilorLuxottica Acquires AI-Driven Ophthalmology Platform Optegra to Expand Medical Technology Portfolio

Key Takeaways: Powered by lumidawealth.com EssilorLuxottica, the maker of Ray-Ban, announced plans to acquire Optegra, an AI-focused ophthalmology platform operating over 70 eye hospitals across Europe. The acquisition aligns...

Read more

Delaware AG Seeks Investment Bank to Advise on OpenAI Restructuring Amid Legal and Regulatory Scrutiny

by Team Lumida
3 days ago
AI Security Breach: How Hackers Stole OpenAI’s Internal Secrets

Key Takeaways: Powered by lumidawealth.com Delaware Attorney General Kathy Jennings plans to hire an investment bank to advise on OpenAI’s restructuring and conduct an independent valuation of its assets....

Read more

Nvidia Posts Record $44 Billion Revenue Despite China Ban, Shares Surge Over 5%

by Team Lumida
3 days ago
Nvidia’s AI Demand Surge: Hon Hai Ramps Up Server Production

Key Takeaways: Powered by lumidawealth.com Nvidia’s Q1 revenue reached a record $44.06 billion, a 69% year-over-year increase, despite losing $2.5 billion in sales due to U.S. restrictions on chip...

Read more

We Made a Film With AI: Revolutionary Tools, Human Creativity, and a Lot of Work- WSJ

by Team Lumida
4 days ago
We Made a Film With AI: Revolutionary Tools, Human Creativity, and a Lot of Work- WSJ

Key Takeaways: Powered by lumidawealth.com Using AI tools like Google’s Veo 3 and Runway AI, WSJ producers created a three-minute film, “My Robot & Me,” entirely with AI-generated visuals...

Read more

Capgemini Partners with SAP and Mistral AI to Deliver Generative AI Solutions for Regulated Industries

by Team Lumida
5 days ago
Capgemini Partners with SAP and Mistral AI to Deliver Generative AI Solutions for Regulated Industries

Key Takeaways: Powered by lumidawealth.com Capgemini has teamed up with Mistral AI and SAP to provide generative AI-powered solutions tailored for regulated industries. The collaboration leverages Mistral AI’s advanced...

Read more

OpenAI Expands to South Korea, Citing Strong AI Adoption and Market Potential

by Team Lumida
6 days ago
OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

Key Takeaways: Powered by lumidawealth.com OpenAI has established a legal entity in South Korea and plans to open an office in Seoul in the coming months to support partnerships...

Read more

DOJ Probes Google’s Deal with Character.AI for Potential Antitrust Violations

by Team Lumida
1 week ago
China Stimulus: Enough to Sway Markets?

Key Takeaways: The U.S. Department of Justice (DOJ) is investigating whether Google’s licensing agreement with Character.AI violates antitrust laws by circumventing formal government merger scrutiny. Google signed a...

Read more

Sam Altman and Jony Ive Unveil Plans for AI-Powered ‘Companion’ Device

by Team Lumida
1 week ago
OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

Key Takeaways: Powered by lumidawealth.com OpenAI plans to launch a pocket-sized, screen-free AI "companion" device by late 2026, aiming to integrate AI seamlessly into everyday life. The device, designed...

Read more

Nvidia CEO Criticizes U.S. AI Export Curbs, Calls for Easing Restrictions on China

by Team Lumida
2 weeks ago
Nvidia CEO Reveals Secrets Behind AI Domination Amidst Fierce Competition

Key Takeaways: Powered by lumidawealth.com Nvidia CEO Jensen Huang criticized U.S. export controls on AI chips, calling them a "failure" and urging the White House to ease restrictions to...

Read more
Next Post
gold and silver round coins

Gold Drops 3% as US-China Tariff Deal Boosts Dollar and Eases Safe-Haven Demand

Amazon Targets Rural America: A Game-Changer for Delivery Services

Amazon Partners With FedEx for Large Package Deliveries Amid UPS Phase-Out

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

blue coupe parked beside white wall

Tesla Challenges EU in Court Over Chinese EV Import Tariffs

January 27, 2025

Geopolitical Shockwave: U.S. Stocks Fall, Oil Prices Spike After Iran Strikes Israel

October 2, 2024
a view of a city street

U.S. and Russia to Hold Talks on Ukraine War Amid Push for Peace Settlement

February 17, 2025

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018