- Foxconn and SoftBank form a joint venture to produce data-centre equipment at a former EV plant in Ohio as part of the Stargate project.
- The move advances the $500 billion AI infrastructure initiative, though Stargate continues to face delays and financing hurdles.
What happened: Foxconn to build data-centre gear at Ohio EV plant
Foxconn is to manufacture data-centre equipment in collaboration with SoftBank at the Taiwanese firm’s former electric-vehicle factory in Lordstown, Ohio, as part of the Stargate project. SoftBank has acquired the site for US $375 million, and Foxconn chairman Young Liu confirmed that Foxconn will continue operations through a joint venture with SoftBank. The initiative is linked to the Stargate joint venture between SoftBank, OpenAI and Oracle, a US-announced AI infrastructure drive slated for up to $500 billion in investment.
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Why it is important
With this development, a dormant EV manufacturing site is being transformed into one of the first facilities targeted at producing AI hardware in the United States. If properly implemented, it could support technological sovereignty, job creation, and domestic AI infrastructure—all of which are important goals of the Stargate initiative. But despite its size and audacious goal, Stargate has faced many obstacles. Six months after its January announcement, the larger project has not yet begun in its entirety; no significant funds have been raised, and partner disputes, particularly regarding operations, continue.
These delays cast doubt on the feasibility of a $500 billion rollout. While the Ohio conversion is concrete, it remains unclear whether the broader infrastructure build-out will materialise as promised. Without steady financing, regulatory clarity or unified leadership, Stargate may stall further despite its high-profile backers. That Foxconn, pivoting from its traditional consumer-electronics strength, is stepping into AI hardware manufacturing demonstrates adaptability—but also underscores the gamble being taken. For readers, the project’s success or failure could signal whether megaprojects in AI infrastructure can overcome bureaucratic inertia and funding complexities—or collapse under their own ambition.
