Oracle, OpenAI Scrap Texas AI Data Center Expansion Plans; Meta Eyes Site: Report

• Nvidia assisted with facilitating Meta’s discussions with Crusoe, the developer, as per the report.
• Meta and Crusoe’s talks over the expanded site usage, while ongoing, could still change, as per the report.
• Meanwhile, Oracle and Crusoe’s relationship has also been reportedly fraught over reliability at the site.

Oracle Corp. and OpenAI have reportedly shelved their plans to expand an artificial intelligence data center in Abilene, Texas. The deal reportedly collapsed amid drawn-out negotiations over financing as well as OpenAI’s evolving demand forecasts.

According to a report from Bloomberg, citing people familiar with the matter, the deal’s end has prompted Meta Platforms (META) to consider taking the planned expansion site on lease.

Nvidia Corp. (NVDA) assisted with facilitating Meta’s discussions with Crusoe, the developer, the report added.

ORCL shares closed 1.1% lower on Friday. Meanwhile, shares of Bloom Energy Corp. (BE), Applied Digital Corp. (APLD), and CoreWeave Inc. (CRWV) also declined on the news, ending the day over 15%, 10%, and 2% lower, respectively.

Site Details

The AI data center campus in Abilene is part of the U.S. government-announced Stargate project, and the 1,000-acre site is under construction even though many sections are functional, as per the report.

In July 2025, Oracle (ORCL) and OpenAI had agreed to a development of up to 4.5 gigawatts of additional Stargate capacity at the site, reportedly deploying Nvidia’s chips. While that deal is still on track, tentative plans to lease out a larger expansion have been shelved, as per the Bloomberg report.

After the expansion deal fell through, developer Crusoe had an opening for a tenant. Nvidia stepped in as a measure to keep its own semiconductors on the expanded data center instead of losing out to Advanced Micro Devices Inc. (AMD), according to the people cited in the report. Additionally, Nvidia had reportedly already paid a $150 million deposit for the site and hence began negotiating the deal to bring Meta on board as a tenant.

Meta and Crusoe’s talks over the expanded site usage, while ongoing, could still change, as per the report.

Strained Relations

Meanwhile, Oracle and Crusoe’s relationship has also been reportedly fraught over reliability at the site. Bloomberg said that people familiar with the matter had stated that earlier this year, many data center buildings went offline for days on end after winter impacted multiple liquid cooling machinery.

However, both companies reportedly told Bloomberg that their relationship was solid and Oracle’s leased data center site was progressing quickly.

“We are very proud of our relationship and our progress in bringing capacity online,” Oracle reportedly said in a statement.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ORCL shares jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours amid ‘low’ message volumes. The ticker was trending on the top position on the platform at the time of writing.

Meanwhile, retail sentiment around META shares was in the ‘bearish’ territory amid ‘low’ message volumes.

ORCL shares have declined more than 21% this year, while META shares have fallen about 0.8% in the same period. Meanwhile, NVDA shares have lost about 5% of their value this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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