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

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.