In a post on X on March 7, 2026, Bloomberg Technology co-host Ed Ludlow confirmed rumours of Oracle and OpenAI’s change of plans for their flagship AI expansion data centre in Abilene, Texas, as the release of Bloomberg’s detailed report raised uncertainty among investors in the AI infrastructure market.
With market sentiment impacted drastically by the sudden turn of events, concerns were raised among investors about the volatility of the booming AI market and what to expect in the future.
CoreWeave and Bloom Energy Stocks Fall
Upon the release of the Bloomberg report on Friday, stocks, specifically those of Bloom Energy and CoreWeave, took a hard hit, with Bloom Energy (BE) dipping 15% to $135.19, while CoreWeave (CRWV) fell 2.5% to $72.99 by Friday’s close.
Bloom Energy manufactures and delivers solid oxide fuel cell systems for on-site power generation. The company thus offers sustainable energy solutions in global markets, with a market capitalisation of approximately $39.82 billion. Along with CoreWeave’s leadership in AI cloud computing, the two companies serve as innovators within the field of AI infrastructure.
However, with Oracle (ORCL) and OpenAI abandoning plans to expand a major AI data centre in Abilene, Texas, investors of CoreWeave and Bloom Energy faced concerns about the future of AI infrastructure, with the news adversely affecting demand for power systems that run such facilities.
The report also noted that Oracle’s long-standing deal with OpenAI to develop 4.5 gigawatts of data centre capacity across multiple U.S. locations continues to be in motion.
NVIDIA’s Potential Take-Over of Stargate
The U.S. government’s Stargate initiative invested $500 billion and 10 gigawatts in companies like SoftBank Group (9984), OpenAI, and Oracle (ORCL). The Stargate initiative aimed to expand capacity from 1.2 gigawatts to 2 gigawatts at the 1,000-acre site developed by Crusoe.
Plans to expand the flagship AI centre were scrapped due to protracted negotiations over financing and OpenAI’s changing infrastructure needs. The winter weather outage that disrupted the liquid cooling systems, as well as uncertain demand forecasts from OpenAI and other operational challenges, prolonged the decision for months, as reported by Bloomberg News on Friday.
NVIDIA played a key role after the collapse, paying a $150 million deposit to Crusoe and helping broker discussions with Meta Platforms, which is now considering leasing the expansion space.
As Oracle and OpenAI took a step back from Stargate, Meta offered to potentially lease the expansion space from developer Crusoe. This shift was facilitated by NVIDIA, the leading AI chipmaker, as a means of securing a position for its own AI chips in the highly competitive AI market, with an investment of $150 million in Crusoe.
Will the Future be AI-Driven?
Generative AI services such as ChatGPT and Copilot require a huge amount of computing power and need investors. However, the market reaction following the Stargate update underscores the high volatility of the AI industry, where investors are still trying to find stable ground with shared interests.
Whether to buy the dip or stay put is an investor’s choice. But in the growing digital landscape, where each task is being replaced by artificial intelligence, being open-minded to change is crucial to one’s own sustenance.
