Ohio’s Lordstown Factory Pivots to AI Powerhouse in $500 Billion Stargate Initiative

In a significant development poised to reshape the landscape of artificial intelligence infrastructure, Japan’s SoftBank Group has acquired Foxconn Technology Group’s sprawling former electric vehicle (EV) factory in Lordstown, Ohio. This strategic $375 million acquisition solidifies a new partnership between the two technology giants, aimed at manufacturing critical data center equipment for OpenAI’s ambitious Stargate project.

This news comes as part of a colossal effort to build out the next generation of AI computing capacity in the United States, a venture announced by U.S. President Donald Trump in January 2025.

The Stargate Project: A Half-Trillion Dollar Vision

The Stargate project is an audacious joint venture spearheaded by SoftBank, OpenAI, and Oracle, with additional funding from MGX, an Abu Dhabi investment firm. First unveiled in early 2025, the initiative commits a staggering $500 billion over the next four years to construct advanced AI infrastructure across the United States. An immediate deployment of $100 billion has already been allocated to kickstart this transformative endeavor.

SoftBank, under the leadership of its chairman Masayoshi Son, assumes primary financial responsibility for the Stargate project, while OpenAI oversees its operational direction. The goal is to establish a network of large-scale data centers capable of training and running the sophisticated AI models being developed by OpenAI, aiming to cement American leadership in the rapidly evolving AI sector.

Key technology partners, including Arm, Microsoft, NVIDIA, and Oracle, are integral to the project, with Oracle already installing Nvidia GB200 systems at the initial Stargate I site, currently under construction in Abilene, Texas. Beyond Texas, OpenAI is actively exploring additional locations for future campuses across 16 states, including Ohio, Arizona, New York, and Pennsylvania, underscoring the nationwide scope of this initiative.

Ohio’s Strategic Role: From EVs to AI Servers

The choice of the Lordstown, Ohio, facility is pivotal for the Stargate project. Foxconn Chairman Young Liu emphasized that Ohio was selected due to its abundant power capacity, extensive land available for expansion, and the pressing need for rapid deployment to meet the Stargate timeline. The 6.2 million-square-foot plant, originally a General Motors factory before being acquired by Foxconn from Lordstown Motors in 2022 for electric vehicle production, offers a ready-made industrial footprint for this new manufacturing focus.

Under the terms of the deal, SoftBank acquired the Lordstown site for $375 million. However, Foxconn will not fully exit the facility; instead, it will continue to operate the plant through a newly formed 50/50 joint venture with SoftBank, specifically dedicated to producing data center equipment. This arrangement leverages Foxconn’s extensive expertise as the world’s largest supplier of AI servers, a sector that has recently surpassed its traditional smart electronics business in revenue.

Economic Impact and Broader Implications

The pivot of the Lordstown factory signifies a broader trend in the tech industry, as companies shift focus to meet the burgeoning demand for AI hardware. The Stargate project is anticipated to generate hundreds of thousands of American jobs and deliver substantial economic benefits, contributing to the re-industrialization of the United States.

SoftBank’s investment in the Ohio plant and the broader Stargate initiative aligns with its aggressive strategy to establish a central role in the global AI ecosystem. This includes recent, significant investments, such as a $2 billion stake in Intel to bolster AI chip development and a tripling of its holdings in NVIDIA. Such moves are also bolstered by U.S. government support through initiatives like the CHIPS and Science Act, designed to foster domestic semiconductor manufacturing and AI infrastructure.

While the project faces the inherent challenges of such a massive undertaking, with SoftBank’s CFO acknowledging some delays in getting Stargate fully off the ground, the collaboration in Ohio marks a tangible step forward. The repurposing of a former automotive manufacturing hub into a cutting-edge facility for AI infrastructure underscores the dynamic evolution of American industry in response to the demands of the intelligence age. This latest headline underscores the strategic importance of Ohio in the unfolding narrative of global AI leadership.