Oracle shares fell between 4.7% and 5.3% on Monday following a report from The Information questioning the Stargate AI data center initiative. The project is a high-profile joint venture involving OpenAI and SoftBank.
The report alleges the venture maintains minimal staffing and lacks direct control over any data centers. These findings have created significant uncertainty regarding the project's execution and organizational structure.
Market analysts indicate that traders are now viewing Oracle stock as a proxy for OpenAI’s ability to secure capital for large-scale infrastructure. The sell-off reflects broader investor anxiety regarding Oracle's rising debt levels, recent insider selling, and the financing risks associated with its massive AI commitments.