I believe thats the real reason, its not just Oracle, it would eventually be everyone in this kind of boat. No business would publicly use (or claim) AI to write code with recent verdict over the IP rights of AI generated code.

It would be interesting to see how this effects the copyleft Licences with contributors are using AI for the PRs

Definitely. Internally, Oracle is very strict about the use of code written outside of Oracle- there is a very strict set of rules and procedures to incorporate open source libraries into their products and services.

As for AI, certain core teams, notably the Database team, are forbidden from using LLM coding tools.

I don't know, Oracle historically has a very chill, almost laissez-faire point of view on licensing.

This constitutes an admission on the part of one of the largest AI investors that AI generated/"assisted" code is inadequate (in part) because it is produced in flagrant violation of license rights.