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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.
Nscale declined to comment when approached by CNBC. Nvidia has been approached for comment.
OpenAI and Nscale are still in discussions about the project in the future, a source with direct knowledge of the matter told CNBC.
"We see huge potential for the U.K.'s AI future," the OpenAI spokesperson added. "London is home to our largest international research hub, and we support the Government's ambition to be an AI leader."
"In the meantime, we are investing in talent and expanding our local presence, while also delivering on the commitments under our MOU with the Government to adopt frontier AI in UK public services," the statement continued.
— CNBC's Arjun Kharpal also contributed to this report.
This is a developing story. Refresh for updates.
