Oracle denies Bloomberg report that it’s delaying some data centers for OpenAI to 2028 from 2027
Getting a multi-hundred-billion-dollar backlog for cloud computing revenues from data center projects is easy. Building them is hard.
Oracle extended declines to as much as -6.5% on the day on the heels of a Bloomberg report that the cloud giant has pushed back the completion dates for some of the data centers it’s building for OpenAI to 2028 from 2027, citing people familiar with the work. Oracle denied this report, telling Reuters that there have been no delays to any sites required to meet its contractual commitments and that all milestones remain on track.
Shares had fully pared their report-induced drop ahead of Oracle’s reply, but remain in the red for the day.
Bloomberg said the reported postponement was attributed to labor and material shortages.
Oracle has been spending more on capex than Wall Street had anticipated, leading to higher-than-expected cash burn. Management boosted its full-year capital spending plans by $15 billion after reporting Q2 results earlier this week.
Oracle’s cloud infrastructure sales came in short of estimates in its fiscal 2026 Q2, a signal that markets already had reason to doubt its ability to quickly turn its humungous RPO (that is, remaining purchase obligations) into revenues.
Traders also seem to be of the mind that potential delays to data center completions are going to limit sales for what goes into them.
Some of the bigger losers since the Bloomberg headline hit the wires include:
