Oracle Corporation shares fell 4.7% Monday amid broader tech sector weakness and questions about the Stargate AI data center initiative. The decline comes after a report from The Information raised doubts about the $500 billion-plus joint venture with OpenAI and SoftBank.

According to the report, Stargate has minimal staff and doesn't directly control any data centers. The three partners reportedly disagreed over project structure and responsibilities in the weeks following the January 2025 announcement. OpenAI initially attempted to develop data centers itself but shelved those plans after lenders balked at backing multibillion-dollar projects tied to the company's unproven business model.

Oracle and OpenAI announced a deal in July to develop 4.5 gigawatts of data center capacity across multiple U.S. sites, with the companies agreeing to share economic risk. A separate project in Milam County, Texas, involves OpenAI and SoftBank Energy, with SoftBank developing and owning the facility while OpenAI controls its design. The Information reported that OpenAI's struggles to secure computing capacity weighed on its finances last year, with gross profit margins lower than expected due to last-minute compute purchases.