Oracle Shares Dip Amid Questions Over AI Project's Pace

Oracle shares are down 2.8% after a report that the $500 billion Stargate AI project has been scaled back. The Stargate venture, a cooperative effort between OpenAI, Oracle, and SoftBank Group, aims to build AI facilities. A slow start to the project isn't a crisis, as the focus is on long-term potential, not short-term performance.

Oracle shares have dropped by 2.8% following a report that the $500 billion Stargate AI project has been scaled back. The Stargate venture, a cooperative effort between OpenAI, Oracle, and SoftBank Group, aimed to build AI facilities. Despite the setback, the focus remains on the long-term potential of the project rather than short-term performance.

The project, announced in January 2025, was initially expected to create over 100,000 jobs in the United States. However, recent developments suggest that the project is facing delays and may not meet its initial goals. According to TechRadar Pro [2], the project is now targeting a smaller data center in Ohio by the end of the year, a significant slowdown compared to earlier plans.

Oracle CEO Safra Catz has stated that the project is not yet formed, while OpenAI CEO Sam Altman and SoftBank CEO Masayoshi Son have both expressed that the partnership remains strong and active [2]. The Wall Street Journal reported that OpenAI and SoftBank have disagreed over data center locations and the use of SB Energy sites [3]. Despite these challenges, Oracle and OpenAI have struck a $30 billion deal for 4.5 gigawatts of capacity [4].

The slow start to the project is not a crisis, as it is a long-term initiative aimed at bolstering the U.S.'s position as a global leader in tech and AI. The project is part of a broader effort by the U.S. government to invest $500 billion in AI infrastructure, with contributions from various tech companies including Apple and Nvidia [1].

While the setback may impact Oracle's stock in the short term, the long-term benefits of the Stargate project could be substantial. The project aims to create a robust AI infrastructure that could power various AI services and applications. The slowdown in the project's progress may not deter investors who are focused on the long-term potential of AI and the U.S.'s leadership in the field.

References:
[1] https://www.barrons.com/articles/oracle-stock-price-project-stargate-openai-03f18b67
[2] https://www.techradar.com/pro/open-ais-project-stargate-is-already-struggling-may-be-scaled-back
[3] https://www.reuters.com/business/softbank-openais-stargate-aims-building-small-data-center-by-year-end-wsj-2025-07-22/
[4] https://www.reuters.com/business/openai-oracle-deepen-ai-data-center-push-with-45-gigawatt-stargate-expansion-2025-07-22/