AI-related stocks are sliding late in the New York cash session afterBloomberg Newsreported thatOracle and OpenAI have scrapped plans to expand the Stargate AI data center in Abilene, Texas, from about 1.2 GW to 2.0 GW. Sources said the expansion was canceled after talks stalled over financing issues and OpenAI's changing demand forecasts.
However, the collapse of the Oracle-OpenAI plans has opened the door for Meta, which is now in talks to lease the space instead. Nvidia is reportedly helping to broker that deal and has put down a $150 million deposit with developer Crusoe.
Progress at our datacenter in Abilene. Fun to visit yesterday!pic.twitter.com/W22ssjWstW
Oracle's broader 4.5 GW data center agreement with OpenAI remains intact, and other projects are still moving forward, according to the report.
The report erased all of Oracle's intraday gains within minutes.
The selling extended across AI-related stocks:
NVIDIA SHARES EXTEND DROP TO SESSION LOW; DOWN AS MUCH AS 2.5%
COREWEAVE SHARES TURN NEGATIVE, FALL MORE THAN 2%
The story comes one day after Bloomberg reported that Oracle ispreparing to lay off thousandsof workers as it spends aggressively on AI data center buildouts.
The planned cuts will affect divisions across the company and may be implemented by the end of this month, according to the outlet, citing people familiar with the matter who asked not to be named. Some of the cuts will target jobs that AI will replace, according to two people familiar with the plans.
Source: ZeroHedge News
