OpenAI halts UK stargate project amid regulatory and energy price concerns

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OpenAI’s Stargate project in the U.K. is being paused, with the company pointing towards the cost of energy and the country’s regulatory environment.

The U.S. AI startup announced plans for the major infrastructure project in September, saying it would deploy up to 8,000 GPUs in partnership with Nscale and Nvidia

. Politico first reported on Wednesday that the project was on hold.

“We continue to explore Stargate U.K. and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment,” an OpenAI spokesperson told CNBC in a statement.