As a 3rd-party, curious observer, I have several naive, unanswered questions about the Stargate project. Obviously understand that they have no obligation to disclose. Here is list with responses wide open. I would love to be able to aggregate the best answers at some point.
1. Corporate Structure
The OpenA press release says that Stargate is "a new company." Is Stargate established as a standard C-corp, LLC, a joint venture, or something else entirely?
The OpenA press release says that Stargate is "a new company." Is Stargate established as a standard C-corp, LLC, a joint venture, or something else entirely?
2. CEO Leadership
Will Stargate have an independent CEO? Who will lead Stargate on a daily basis, and how is that person chosen? Will they be as operationally intense as the XAI team that launched Memphis?
Will Stargate have an independent CEO? Who will lead Stargate on a daily basis, and how is that person chosen? Will they be as operationally intense as the XAI team that launched Memphis?
3. Customer Exclusivity
Is OpenAI the sole customer, or will Stargate yearn to serve other businesses? Does Microsoft’s deal with OpenAI impose any exclusivity constraints (the Microsoft release suggests it may)?
Is OpenAI the sole customer, or will Stargate yearn to serve other businesses? Does Microsoft’s deal with OpenAI impose any exclusivity constraints (the Microsoft release suggests it may)?
4. Operating Partner Role
Release says OpenAI is the “operating partner.” What does that mean in practical terms—are they running day-to-day operations, technology decisions, or something else? If they have full control this would require consolidation as a public co.
Release says OpenAI is the “operating partner.” What does that mean in practical terms—are they running day-to-day operations, technology decisions, or something else? If they have full control this would require consolidation as a public co.
5. Oracle’s Day-to-Day Involvement
What specific role is Oracle playing? Are they providing infrastructure, software, strategic guidance, financial backing? What pieces of their software are being utilized? Did Oracle previously own the Abilene, Texas assets?
What specific role is Oracle playing? Are they providing infrastructure, software, strategic guidance, financial backing? What pieces of their software are being utilized? Did Oracle previously own the Abilene, Texas assets?
6. Comparison to CoreWeave
What kind of business is Stargate? Is it effectively a direct competitor to CoreWeave’s AI hosting approach, or is it structured and positioned differently? If so, how is it different?
What kind of business is Stargate? Is it effectively a direct competitor to CoreWeave’s AI hosting approach, or is it structured and positioned differently? If so, how is it different?
7. Debt Usage
Will Stargate employ significant debt financing? (Equinix is around 1:1 debt-to-equity, while CoreWeave is rumored to go as high as 3:1 or 4:1.) What level of risk will this entity assume?
Will Stargate employ significant debt financing? (Equinix is around 1:1 debt-to-equity, while CoreWeave is rumored to go as high as 3:1 or 4:1.) What level of risk will this entity assume?
8. Appeal to Third-Party Investors
If 3rd parties invest (as release suggests), what’s the ROI for them? Is there a guaranteed spend from OpenAI? Are other customers lined up (unusual to have an investible company with 1 customer)? How do these investors get liquidity?
If 3rd parties invest (as release suggests), what’s the ROI for them? Is there a guaranteed spend from OpenAI? Are other customers lined up (unusual to have an investible company with 1 customer)? How do these investors get liquidity?
9. Standalone & Potential “Round-Tripping”
If this isn’t intended to be a stand-alone public company, how do outside investors eventually recoup their investment? Does funding from strategic partners essentially pay for their own product usage (i.e., classic “round-tripping”)?
If this isn’t intended to be a stand-alone public company, how do outside investors eventually recoup their investment? Does funding from strategic partners essentially pay for their own product usage (i.e., classic “round-tripping”)?
10. Pre-training vs Inference & Data Center Structure
Do we need ever-increasing larger clusters? Do data limits & parameter count limits reduce this need? Does "inference-most" imply a new architecture? Do Deepseek & Bytedance releases suggests performance can cost much less?
Do we need ever-increasing larger clusters? Do data limits & parameter count limits reduce this need? Does "inference-most" imply a new architecture? Do Deepseek & Bytedance releases suggests performance can cost much less?
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