Musk Responds to Stargate Project Stalling
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy ORCL?
Source: Benzinga
- Project Stalling: Musk commented on the $500 billion Stargate data center venture's stagnation, stating that 'hardware is hard,' as the project has failed to staff meaningfully since its announcement in January 2025, resulting in no direct role in building OpenAI's data centers.
- Leadership Disputes: The Stargate joint venture is gridlocked due to disagreements over leadership, structure, and financial responsibilities, with OpenAI and SoftBank clashing over control of key Texas data center sites, ultimately compromising on OpenAI leasing and designing the facility while SoftBank's energy arm develops and owns it.
- Intensifying AI Infrastructure Race: Despite Stargate's stall, the AI infrastructure arms race continues to accelerate, with Anthropic announcing a $50 billion data center buildout with Fluidstack in Texas and New York, with sites expected to come online this year.
- Market Sentiment Shift: Polymarket traders express skepticism regarding OpenAI's position in the AI race, assigning only an 11% chance of holding the top AI model by the end of June, while Google and Anthropic are seen at 40% and 35%, respectively.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 145.230
Low
180.00
Averages
309.59
High
400.00
Current: 145.230
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Demand: Since the U.S. and Israel's initial strikes on Iran at the end of February, defense tech startups have reported a significant uptick in demand from Department of Defense customers, with many offering to buy out capacity or requesting increased production to meet escalating military needs.
- Workforce Expansion: In response to the Iran war, European-headquartered defense startups are set to increase their workforce in the Middle East, with Estonian drone and missile interceptor startup Frankenburg and Ukrainian-UK Uforce both announcing plans to ramp up hiring in the region.
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See More
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- Escalating Iranian Threats: The Iranian Revolutionary Guard Corps recently threatened to target multiple U.S. tech companies operating in the Middle East, including Oracle, indicating a significant escalation in regional tensions.
- Corporate Security Risks: This incident raises security risks for tech companies like Oracle, potentially affecting their operational and investment decisions in the Middle East amid the current geopolitical instability.
- Historical Context: Earlier in March, Iranian drone strikes had already damaged Amazon Web Services (AMZN) data centers in the UAE, causing outages in apps and digital services, underscoring the ongoing security threats.
See More
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- Escalating Security Threats: Iran's Revolutionary Guard has designated 18 tech companies, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, indicating the increasing significance of tech assets in conflicts.
- Industry Impact: James Henderson, CEO of risk management firm Healix, noted that the threats against tech companies are part of a sustained pattern, suggesting that future crises may target data centers and cloud platforms as much as traditional strategic sites.
- Historical Context: In March, Iran attacked Amazon Web Services data centers, causing outages in several apps and digital services in the UAE, underscoring the serious cybersecurity landscape in the region.
See More
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- Incident Overview: Oracle's building in Dubai sustained minor damage from debris due to an aerial interception, with no injuries reported; however, this incident highlights escalating tensions in the Middle East that could impact Oracle's operational safety in the region.
- Threats to Tech Companies: Iran's Revolutionary Guard has designated 18 U.S. tech firms, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, which raises the operational risks for these companies in the Middle East.
- Rising Cybersecurity Risks: As threats against tech companies escalate, risk management expert James Henderson notes that tech assets are now viewed as integral to the conflict, suggesting future attacks may target data centers and cloud platforms, increasing security vulnerabilities in the industry.
- Historical Context: Iran previously attacked Amazon Web Services data centers in early March, causing outages in various apps and digital services in the UAE, and a repeat of such incidents could severely impact Oracle and other tech firms' operations.
See More
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- Industry Trend Analysis: With the rising demand for AI, Oracle's technology and product offerings may align better with market needs, especially in enterprise solutions, which will help elevate its position in the industry.
- Investor Confidence Boost: Analysts are optimistic about Oracle's prospects, believing its performance will surpass Nvidia's over the next five years, potentially attracting more investor interest and driving stock price increases.
- Innovation Potential: Oracle's ongoing investments and R&D capabilities in the AI sector may allow it to lead in technological innovation over Nvidia, further solidifying its market position and driving long-term growth.
See More
