Oracle, SoftBank shares dip amid OpenAI data center project concerns

By EC Assets · Published 28 April 2026 · Updated 28 May 2026

Shares of companies with exposure to artificial intelligence (AI) capital expenditure, such as Oracle and SoBank, experienced declines of potential issues with a joint data center project involving OpenAI. OpenAI, Oracle, and SoBank had previously planned to develop five new AI data centers as part of the "Stargate" project, an initiative valued at $500 billion. Recent developments indicate a slowdown in these expansion efforts. Oracle's stock dropped emerged that OpenAI and Oracle were shelving plans for a data center expansion in Texas. This specific project was part of the broader Stargate initiative. The Stargate project aims to build a global network of specialized AI data centers to support OpenAI's operations. The joint project between SoBank and OpenAI, valued at $500 billion, ly facing difficulties. Concerns about the project's progress contributed to the market reaction. CoreWeave was also affected by these market movements. Despite, OpenAI had expanded its data center deal with Oracle earlier. Parts of the Stargate 1 project in Texas were operational. This indicates ongoing, albeit potentially modified, collaboration between the companies on some fronts. challenges primarily relate to the ambitious expansion plans. The volatility experienced by these companies reflects market sensitivity to the future of large-scale AI infrastructure development. Investors are closely monitoring the progress of significant capital expenditure projects in the AI sector. Delays or changes in these plans can influence investor sentiment towards companies with considerable AI exposure. Future announcements regarding the Stargate project, including any revised timelines or scaled-back plans for data center expansion, will be key to watch. This article is intended for informational purposes only. It does not constitute investment advice.