Oracle's stock price declines due to concerns over the Stargate project

LootboxPhobia · 2026-02-23T16:24:32+00:00

Oracle's stock price dropped 4.7% due to weakness in tech stocks and concerns over the Stargate AI data center project. The joint venture partners have disagreements over structure and responsibility allocation, and OpenAI is facing difficulties in acquiring computing power, which has impacted its financial situation.

LootboxPhobia

2026-02-23 16:24:32

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Investing.com - Oracle Corporation (NYSE:ORCL) stock fell 4.7% on Monday, influenced by the overall weakness in the tech sector and a report by The Information questioning the Stargate AI data center project.

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The Nasdaq 100 declined 1% that day, adding pressure on tech stocks. Oracle is one of three partners in Stargate, a joint venture valued at over $500 billion, announced by OpenAI and SoftBank in January 2025.

According to The Information’s weekend report, Stargate’s joint venture employees are very few, and the company does not directly control any data centers. The report states that within weeks of its announcement, the three partners experienced disagreements over the project structure and responsibility distribution.

The report notes that OpenAI initially attempted to develop data centers independently, but these plans were shelved after lenders refused to support the billion-dollar projects related to the company’s unverified business model. Subsequently, OpenAI reached separate agreements with SoftBank and Oracle, rather than collaborating through the joint venture.

In July, Oracle and OpenAI announced an agreement to develop 4.5 gigawatts of data center capacity at multiple locations in the United States. According to the report, both companies agreed to share economic risks, meaning delays or budget overruns would be borne jointly.

Another project in Milam County, Texas, involves OpenAI and SoftBank Energy, with SoftBank developing and owning the facility, while OpenAI controls its design and holds a long-term lease. The two companies broke ground on the project in October.

The Information reports that OpenAI’s difficulties in acquiring computing power have put pressure on its financials last year, as temporary procurement of computing resources resulted in lower-than-expected gross margins.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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