Oracle pushes back some OpenAI data centre projects to 2028: Bloomberg
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The news: Oracle has pushed back the expected completion date for some data centres it agreed to develop for OpenAI from 2027 to 2028, according to sources cited by Bloomberg.
The context: Sources told the masthead that the delays are largely tied to shortages of labour and materials.
Disappointing earnings reported by Oracle on Wednesday saw its shares slump 16.5% after the company warned that its capital expenditures for fiscal year 2026 are now expected to be USD15 billion higher than it estimated in September.
The earnings update has fuelled concerns about frothy AI valuations and a possible bubble, dragging the tech-heavy Nasdaq index lower.
The numbers: Oracle has been working to deliver a USD300 billion ($452.03 billion) contract to supply the computing power to train and run OpenAI’s models over the next five years, a deal it agreed to in September.
Shares in OpenAI had fallen 5.3% at 11:03am ET on Friday (3:03am AEDT Saturday).
