Gate News reports that on March 10, Oracle once again issued a statement on the X platform, stating that recent media reports “reflect a fundamental misunderstanding of AI data center construction methods,” emphasizing that the flagship Abilene park “is progressing as scheduled, with 200MW already in operation.” Yesterday (March 9), Oracle posted that the related reports were “false and incorrect,” and today they issued a revised statement. After market close, the company will release its Q3 fiscal year 2026 financial report.
The two statements in two days are a response to a series of shocks over the past two weeks: On March 5, reports emerged that Oracle planned to lay off thousands of employees to cope with cash shortages caused by AI data center expansion; on March 6, reports indicated that Oracle and OpenAI had abandoned plans to expand the Abilene flagship Stargate park from 1.2GW to about 2GW. During that day, ORCL’s stock, which had risen 3% earlier, turned red. OpenAI infrastructure executive Sachin Katti publicly admitted abandoning the expansion, stating “the final decision was to deploy additional capacity elsewhere.” Earlier, reports of delays in delivery in December 2025 and the “zero employees, zero data centers” joint venture for Stargate in February 2026 had already triggered a round of sell-offs.
Oracle’s core dilemma is the gap between a $300 billion OpenAI contract and its own balance sheet. In December 2025, the company disclosed that capital expenditures were expected to exceed previous estimates by $15 billion, and in February 2026, it announced plans to raise up to $50 billion. Wall Street expects free cash flow to remain negative through 2030. ORCL has fallen from its 52-week high of $345.72 on September 2025 to last Friday’s (March 7) close of $151.56, a decline of about 56% over six months, with many investment banks significantly lowering their target prices.
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