Oracle's stock fell 4.5% on Monday after reports indicated that the cloud computing company's joint venture with OpenAI and SoftBank, Stargate, is facing difficulties. The project was announced with significant publicity at the White House in January 2025.

Instead of expanding data center capacity jointly with Oracle and SoftBank as originally planned, OpenAI has entered into separate agreements with each company. Nevertheless, these agreements still fall short of OpenAI's goal to secure 10 gigawatts of capacity by the end of 2025. Last year, OpenAI also began sourcing computing power from suppliers outside the Stargate trio, a move that has resulted in higher-than-expected computational costs.

According to reports, as part of Oracle's 4.5-gigawatt agreement with OpenAI, the two parties agreed to share some of the economic risks associated with the massive project. This means that if the project experiences delays or cost overruns, both sides will share the losses.

Other technology stocks also declined on Monday as investors assessed the impact of artificial intelligence on enterprise applications, a sector in which Oracle also operates.