Oracle Refutes Bloomberg on OpenAI Data Center Delay to 2028
Oracle has found itself in the spotlight due to a recent Bloomberg report alleging delays in the completion of data centers for OpenAI. The report suggested that the timeline for these facilities has been pushed back to 2028, a setback from the previous target of 2027. This news led to a drop of up to 6.5% in Oracle’s shares, although they managed to recover somewhat following a denial from the company.
Oracle’s Response to the Delay Allegation
In response to the Bloomberg report, Oracle strongly refuted the claims. A company representative stated that there are no delays affecting sites essential for fulfilling contractual obligations. Oracle confirmed that all project milestones are on track.
Market Reactions and Financial Implications
Despite Oracle’s denial, the stock market reacted negatively. Shares were initially affected but regained some ground after Oracle clarified the situation. The company is facing heightened scrutiny as it recently increased its capital expenditure plans by $15 billion following its fiscal Q2 results.
- Decrease in Shares: Oracle shares dropped 6.5% after the report.
- Capital Expenditure: Increased by $15 billion for the fiscal year.
- Annual Financial Results: Cloud infrastructure sales missed estimates in Q2 2026.
Challenges Facing Oracle
According to Bloomberg, the reported delays were attributed to ongoing labor and material shortages, which have affected many industries. Oracle’s increased capital spending indicates its commitment to expanding its infrastructure, despite the associated cash burn exceeding Wall Street expectations.
The cloud computing sector remains highly competitive, and concerns about delayed data center completions could hinder Oracle’s sales efforts. Given the significant remaining purchase obligations (RPO), stakeholders are watching closely to see how these developments will impact Oracle’s ability to convert commitments into revenue.
As Oracle navigates these challenges, investors remain cautious about the potential impacts on future sales and market position. The tech industry will be keenly observing developments regarding Oracle’s data center projects and their implications for the broader cloud computing landscape.
