OpenAI Adjusts $500 Billion Stargate Data Center Initiative
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy ORCL?
OpenAI is scaling back and reworking its $500B Stargate data center initiative, halting or pausing several planned projects while shifting toward a more flexible model that relies on leasing compute capacity from third-party providers, The Financial Times reports. The change reflects a strategic pivot away from large-scale owned infrastructure toward faster access to computing resources, even as competition for AI infrastructure and talent continues to intensify. Stargate was initially announced in early 2025 by Donald Trump as a joint venture between OpenAI, Oracle (ORCL), Abu Dhabi fund MGX and SoftBank (SFTBY).
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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: 165.960
Low
180.00
Averages
309.59
High
400.00
Current: 165.960
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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- Capital Raising Capability: Oracle is working on raising $50 billion in debt and equity, while OpenAI has successfully raised $122 billion, providing robust financial support for both companies to ensure ongoing business development.
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See More
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- Strategic Opportunities from High Oil Prices: As oil prices remain elevated, consumers and businesses are increasingly seeking alternative energy sources, positioning Bloom Energy favorably as a hydrogen fuel cell manufacturer, particularly in light of rising power demands from data centers and manufacturing sectors.
See More
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See More
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- Unfavorable Guidance: The company's guidance for domestic same-store sales indicates a “low-single digit decline,” failing to instill confidence in investors and reflecting concerns about its growth potential, which may lead to further stock price volatility.
- Store Expansion Continues: Despite sales challenges, Wingstop is still increasing its store count and generating income and cash flow, suggesting a long-term optimistic outlook that could lay the groundwork for future recovery.
- Cautious Market Reaction: Investors are eagerly awaiting the upcoming earnings call, hoping management will provide more insights into the reasons behind the sales decline and the measures being taken to address it, in order to restore market confidence and stabilize the stock price.
See More
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- Raised Full-Year Guidance: The company increased its FY26 revenue guidance from $3.1 billion–$3.3 billion to $3.4 billion–$3.8 billion, while also raising gross margin expectations to 32%–34%, indicating robust business growth potential.
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- TSMC Exits Arm Investment: Taiwan Semiconductor Manufacturing Company sold 1.11 million shares of Arm between April 28 and 29 at $207.65 per share, generating approximately $231 million in proceeds, leading to a slight 0.13% increase in premarket trading.
See More
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- Escalating Legal Dispute: The legal battle between OpenAI CEO Sam Altman and Tesla CEO Elon Musk intensifies, with Musk alleging breaches of the founding agreement, potentially impacting OpenAI's reputation and investor confidence.
- Shifting Partnerships: Amazon's announcement to integrate OpenAI models into its AWS cloud service, alongside Microsoft's restructuring of its partnership with OpenAI, both of which are major investors, could alter the competitive landscape in the tech industry.
- Talent Acquisition Battle: Meta's attempts to lure OpenAI employees with signing bonuses up to $100 million illustrate the fierce competition for talent in the AI field, and OpenAI's response strategies will directly affect its technological advancement and market position.
See More
