Is Oracle’s massive $500 billion Stargate project in trouble?

Last year, oracle (NYSE:ORCL) announced a massive $500 billion data center project in Texas, enlisting major AI stocks as partners. The Stargate Initiative has been positioned as a transformative leap for the company’s cloud business, promising to drive next-generation AI workloads and deliver outsized revenue growth.

While questions arose about Oracle’s financials and the debt the company took on to finance the massive expansion, Wall Street largely viewed it as a potentially big growth opportunity in the red-hot artificial intelligence infrastructure race. The project appeared to solidify Oracle’s role alongside tech giants seeking generative AI dominance.

Another one Bloomberg Yesterday’s report questioned the state of the project by citing plans for Oracle and said OpenAI to expand the project were put on hold.

Alarm bells about expansion

The Bloomberg report delivered the first bang in the Stargate narrative. It turned out that…