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In the pre climax scene of The Matrix Reloaded (2003), Neo convinces Morpheus that prophecy is wrong:

Morpheus: The prophecy tells us--

Neo: It was a lie, Morpheus. The prophecy was a lie.

Why Oracle's prophecy is wrong?

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The Oracle has spent the last 60+ years telling Morpheus and the others that once they find The One, that this will result in the destruction of The Matrix, the ending of the war with the Machines, and freedom to the peoples of Zion.

Morpheus: When the Matrix was first built, there was a man born inside who had the ability to change whatever he wanted, to remake the Matrix as he saw fit. It was he who freed the first of us, taught us the truth: ‘As long as the Matrix exists the human race will never be free.’ After he died the Oracle prophesized his return and that his coming would hail the destruction of the Matrix, end the war, bring freedom to our people.

That was an outright lie. She is well aware that finding the One is merely the next step along a path that will lead to the destruction of Zion and a continuation of the Matrix system.


Note that in the sequel, it becomes clear that she has been intentionally trying to orchestrate a collapse of the system by pushing Neo (the latest One) and Trinity together, so that he'll choose a different path than the one he's supposed to. It's only once she meets Neo that she realises that her plan has worked, and even then she's still needing to push him along 'the Path of the One' until he reaches the point where he can make up his own damn mind.

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