That means they can't borrow cheaply anymore. The only way to raise cash now is to cut payroll, and that's what they are doing. And what are they doing with the cash? Buying Nvidia hardware to rent out to OpenAI [2].
All Oracle is doing is unpacking Nvidia servers and plugging them in. This is a commodity business, Oracle has no IP in this. To fund it they are making deep cuts to their software development business which does have proprietary IP.
That may have made sense when it was originally announced because AI hype was at its peak at the time. Indeed, Oracle's stock shot up when Stargate was announced, and Larry Ellison briefly became the world's richest person. However, since then the AI hype has evaporated, and hyperscalers are no longer being rewarded with a higher stock price. Oracle stock has dropped more than 50%, and companies NOT investing 100s of billions in AI hardware are now being rewarded, such as Apple.
[1] https://www.nytimes.com/2026/07/31/magazine/takeaways-larry-...