The $500 billion Stargate project, announced by SoftBank and OpenAI at a White House event, is struggling to launch as the companies clash over key partnership terms. Originally aiming for rapid expansion, the initiative has now scaled back plans to construct a single data center by the end of the year, likely in Ohio.

The article argues that OpenAI, despite its current financial losses and criticisms, is positioned to dominate the AI application economy due to its rapid revenue growth and strategic partnerships. It suggests that OpenAI's extensive product offerings and its integration into the broader tech landscape make it too significant to fail, even as it transitions from focusing on superintelligence to generating revenue. The author believes that model companies like OpenAI will lead the market by leveraging insights from startups using their APIs.