Oracle on Friday denied a Bloomberg News report alleging it was delaying data center construction for its major client, OpenAI. The report claimed completion dates for some projects were pushed to 2028 due to shortages. In a statement to Reuters, Oracle asserted that all contractual commitments and milestones remain on schedule, confirming there have been no delays.
The denial occurred as Oracle's stock continued a steep decline. This downturn began after its quarterly earnings report on December 10th. Investors cite two main concerns: aggressive, debt-fueled spending on AI infrastructure and a weaker-than-expected revenue outlook. This decline has erased most of the year's gains for the stock.
Following the initial delay report, Oracle's shares fell by as much as 3.6%. After the company issued its denial, the stock pared losses to a 2.8% decline. This volatile reaction underscores intense investor scrutiny over the massive capital expenditures required for AI projects and the timeline for generating returns on these investments.