Oracle, OpenAI Reportedly Scrap Plan To Expand AI Data Center

CoffeeNFTs · 2026-03-07T22:09:33+00:00

Oracle's stock fell after it was reported that the company and OpenAI abandoned plans to expand a Texas data center due to financing disagreements. Other AI stocks like Nvidia and AMD also declined, while Meta Platforms considered leasing the site instead.

CoffeeNFTs

2026-03-07 22:09:33

Abstract generation in progress

Oracle (ORCL) stock sank late Friday on a report that the tech giant and ChatGPT parent OpenAI scrapped plans to expand a flagship data center in Texas. Other AI stocks such as** Nvidia** (NVDA) and AMD (AMD) pushed lower as well.

Oracle and OpenAI called off plans to work together on an expansion of a massive AI data center under construction in Abilene, Texas, Bloomberg reported. Negotiations dragged out over financing matters and OpenAI’s shifting needs, according to the report.

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The lapsed talks created an opening for Meta Platforms (META), with Bloomberg’s report noting that the Facebook parent company is considering leasing the planned expansion site from Crusoe, which is the site’s developer. Nvidia helped make the connection, according to the report, which cited unnamed sources.

The Texas project is part of the Stargate effort announced at the White House early last year. Crusoe is the developer of the site, which has some parts already up and running. Bloomberg’s report said Oracle and OpenAI elected not to go forward with tentative plans to work together on leasing a large expansion.

However, the companies remain “on track” with a deal announced last year that will have Oracle develop 4.5 gigawatts of data center capacity for OpenAI, according to the Bloomberg report.

An Oracle spokesperson told Bloomberg that the company is “very proud of our relationship and our progress in bringing capacity online,” referring to Crusoe.

A Crusoe spokesperson told the news outlet that Crusoe and Oracle are “operating in lockstep to deliver one of the world’s largest AI factories in Abilene.”

Oracle Stock Falls

Oracle stock fell 1.2% to close at 152.96 on the stock market today. Shares were up nearly 4% early in the day but reversed lower following the report.

Nvidia fell 3% to close at 177.82, with the report seemingly adding to losses from earlier in the day. AMD shed 3.5% to close at 192.43.

Meta stock dropped 2.4% to close at 644.86.

Oracle is set to report fiscal third-quarter results on Tuesday. Shares have fallen by more than 50% from record highs in September amid concerns about the high costs of its AI push and reliance on OpenAI.

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