{"id":312863,"date":"2025-12-12T22:48:11","date_gmt":"2025-12-12T22:48:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/312863\/"},"modified":"2025-12-12T22:48:11","modified_gmt":"2025-12-12T22:48:11","slug":"oracle-denies-report-on-openai-data-center-delays","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/312863\/","title":{"rendered":"Oracle denies report on OpenAI data center delays"},"content":{"rendered":"\n<p class=\"yf-7hmkaz\">Dec 12 (Reuters) &#8211; Oracle denied on Friday a media report that it was delaying OpenAI-related data centers, following investor worries over its debt-fueled AI infrastructure buildout.<\/p>\n<p class=\"yf-7hmkaz\">Bloomberg News had earlier in the day reported that Oracle \u200bhad pushed back the completion dates for some data centers it is developing for OpenAI to 2028, a \u200cyear later than planned, due to labor and material shortages.<\/p>\n<p class=\"yf-7hmkaz\">&#8220;There have been no delays to any sites required to meet our contractual commitments, and all milestones \u200cremain on track,&#8221; Oracle spokesperson Michael Egbert told Reuters in an emailed statement.<\/p>\n<p class=\"yf-7hmkaz\">&#8220;We remain fully aligned with OpenAI and confident in our ability to execute against both our contractual commitments and future expansion plans,&#8221; Egbert added.<\/p>\n<p class=\"yf-7hmkaz\">Shares of Oracle, which had fallen 3.6% following the report, pared some losses to be down by 2.8% in afternoon trading. Other AI-related shares also tumbled, with chip giant <a href=\"https:\/\/finance.yahoo.com\/quote\/NVDA\/\" data-ylk=\"slk:Nvidia;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Nvidia<\/a>, \u2060Advanced Micro Devices, Micron and Arm Holdings down \u200cbetween 2% and 4.5%.<\/p>\n<p class=\"yf-7hmkaz\">The Bloomberg report came a day after Oracle logged its biggest stock drop since late January, following earnings that showed rising spending and a weak outlook for a company \u200dthat is increasingly reliant on OpenAI.<\/p>\n<p class=\"yf-7hmkaz\">Long a smaller cloud-computing player, Oracle has leaped into the <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> infrastructure race this year on the back of a $300 billion OpenAI data-center deal. But the buildout has forced the company to borrow aggressively.<\/p>\n<p class=\"yf-7hmkaz\">Investors, spooked in recent weeks by signs that \u200bGoogle was pulling ahead in the AI race and by Oracle&#8217;s rising debt load, have sold off the company&#8217;s stock \u200cand bonds. The cost of insuring Oracle&#8217;s debt against default surged on Thursday to its highest in at least five years and was up again on Friday.<\/p>\n<p class=\"yf-7hmkaz\">The shares are up just 13% now for the year, having erased all the gains from a 36% jump in September, when it reported a massive backlog of over $450 billion \u2014 mostly tied to OpenAI.<\/p>\n<p class=\"yf-7hmkaz\">Investors have been growing more picky in the AI space, with less willingness to indiscriminately reward spending on AI, even as they bet on its \u2060long-term potential.<\/p>\n<p class=\"yf-7hmkaz\">OpenAI did not immediately respond to a Reuters request for \u200bcomment.<\/p>\n<p class=\"yf-7hmkaz\">After the Bloomberg report, some analysts said the news showed bottlenecks beyond chips \u200bwere emerging for the data-center expansion tech companies are financing with hundreds of billions of dollars in investment.<\/p>\n<p class=\"yf-7hmkaz\">&#8220;Concerns about the ability to build data centers due to construction delays, power availability and other practical \u200dfactors are becoming a much \u2060bigger factor than the expected demands for AI capabilities,&#8221; Bob O&#8217;Donnell, chief analyst at TECHnalysis Research, said.<\/p>\n","protected":false},"excerpt":{"rendered":"Dec 12 (Reuters) &#8211; Oracle denied on Friday a media report that it was delaying OpenAI-related data centers,&hellip;\n","protected":false},"author":2,"featured_media":312864,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,124438,124440,1674,124439,124441,86,56,54,55],"class_list":{"0":"post-312863","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-bloomberg-news","12":"tag-contractual-commitments","13":"tag-data-centers","14":"tag-media-report","15":"tag-michael-egbert","16":"tag-technology","17":"tag-uk","18":"tag-united-kingdom","19":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/312863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=312863"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/312863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/312864"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=312863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=312863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=312863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}