OpenAI's proposed Stargate UK project has hit turbulence as concerns grow over the legitimacy of the multi-billion-pound data centre initiative. The company behind the popular ChatGPT AI, seemingly failed to visit one of the key sites designated for the project in North Tyneside during a crucial period, sparking questions about the government's initial announcements and the promised £30 billion investment.
The Stargate UK project was touted as a major advancement in the UK's AI infrastructure when it was announced last year by then-US President Donald Trump. UK ministers heralded a 'potential' £30 billion investment, with £10 billion committed by Blackstone for a separate data centre and an additional 'potential for £20 billion' from future partners. However, recent findings suggest that this additional £20 billion was largely hypothetical, lacking concrete commitments.
Sources close to the project's inception claim that the government approached UK firm Nscale and OpenAI shortly before Trump's visit, pushing them to agree on developing the Cobalt Park site in North Tyneside. One source revealed that a 'big announcement' was sought by the authorities. The project was subsequently paused in April, with an OpenAI spokesperson citing regulatory frameworks and high energy costs as reasons for the delay.
A Freedom of Information request has exposed the lack of engagement from OpenAI at the North Tyneside site. While Nvidia, a partner in the broader Stargate initiative, reportedly visited the North East combined authority in February 2026, several months after the initial announcement, neither OpenAI nor Nscale held meetings with local authorities at the site.
This development echoes previous investigations that highlighted several government-touted AI investments as potentially 'phantom'. The apparent lack of engagement from OpenAI and ambiguity surrounding the promised investment figures raise significant doubts about the Stargate UK project's role in the UK's AI strategy and its potential impact on jobs, privacy, and daily life.