Shares of CoreWeave and Bloom Energy experienced significant declines Friday following a report that Oracle and OpenAI have halted plans to expand a large artificial intelligence data center in Abilene, Texas. Bloom Energy fell 15% to close at $135.19, whereas CoreWeave declined 2.5% to $72.99, according to financial data compiled by TipRanks.
The decision to cease expansion comes amid stalled financing negotiations and a reassessment by OpenAI of its AI capacity needs, according to a Bloomberg report. The project, known as Stargate, had initially been envisioned as a massive undertaking to support the growing demands of artificial intelligence development.
While Oracle will continue to honor its existing agreements with OpenAI, the failure to secure additional leasing at the Stargate facility has raised concerns among investors. The project faced challenges related to securing financing and reliability, including disruptions caused by winter weather, according to reports.
CoreWeave, a cloud provider specializing in AI-optimized infrastructure, had been slated to provide dedicated compute capacity for OpenAI’s model training and services. A deal announced in March 2025 valued the contract at up to $11.9 billion, with OpenAI also taking a $350 million equity stake in CoreWeave. “Partnering with OpenAI on this net latest contract underscores CoreWeave’s proven ability to deliver reliable and performant infrastructure services, powering AI innovations for world-leading AI labs,” said Michael Intrator, Co-Founder and Chief Executive Officer of CoreWeave, at the time of the initial agreement.
OpenAI CEO Sam Altman echoed that sentiment, stating, “CoreWeave is an important addition to OpenAI’s infrastructure portfolio, complementing our commercial deals with Microsoft and Oracle, and our joint venture with Softbank on Stargate.”
The setback for the Stargate project adds to a broader sense of volatility within the AI infrastructure sector. CoreWeave, which experienced a revenue surge of over 700% in 2024, reaching $1.92 billion, is preparing for an initial public offering. However, the company’s high debt levels and B+ credit rating have contributed to investor apprehension, particularly in light of the Oracle-OpenAI developments.
In September 2025, CoreWeave expanded its partnership with OpenAI in a new deal worth up to $6.5 billion, bringing the total value of their agreements to $22.4 billion. The current status of that expanded agreement, in light of the halted expansion in Abilene, remains unclear.
