Oracle (ORCL) Stock: Slides After Reported OpenAI Data Center Delays—Company Pushes Back

TLDR

• Oracle denied OpenAI data center delays, saying all milestones remain on track

• Reports cited labor and material limits, but Oracle says progress is steady

• Oracle shares fell as investors reacted to uncertainty around AI timelines

• OpenAI expands chip partnerships as future compute demand continues to rise

• Shifting AI infrastructure timelines highlight pressure across cloud providers

Oracle (ORCL) shares closed at $189.97 representing a 4.47% decline at the close, as new reports raised questions about timelines for cloud sites tied to OpenAI.

Oracle Corporation, ORCL

The company challenged the claims and insisted its commitments remain steady and aligned with earlier plans. The market reaction stayed firm, yet the discussion highlighted rising pressure around large-scale infrastructure demands.

Oracle Addresses Report on OpenAI Data Center Timeline

Oracle countered the report that suggested its data center rollout for OpenAI may shift from 2027 to 2028. The company stated that it set the schedule with OpenAI and continues to follow every agreed milestone. Moreover, Oracle emphasized that it sees no internal delay that threatens its contractual targets.

The report cited constraints in labor and materials, yet Oracle maintained its stance that progress remains stable. The cloud division plays a growing role in revenue, and leadership continues to stress operational focus. Therefore, the company signaled confidence as its transition into larger cloud workloads expands.

Oracle’s cloud infrastructure arm still stands smaller than other major providers, but it continues to win notable partnerships. The relationship with OpenAI remains new for the firm, and it aims to strengthen that connection. However, the stock still closed lower as market participants reacted to uncertainty.

Broader Capacity Plans Around OpenAI Partnerships

OpenAI continues to secure additional arrangements with chip and hardware providers as it anticipates rising capacity needs. Nvidia disclosed a letter of intent in September to supply at least 10 gigawatts of equipment for future deployment. Furthermore, the first phase may begin in the latter half of 2026 if planning holds.

NVIDIA and OpenAI released a statement indicating alignment on the partnership’s direction, yet a finalized deal remains pending. Nvidia later noted in a filing that definitive agreements are not guaranteed. This update added more questions around long-term supply needs for advanced compute systems.

OpenAI also explores custom chip design, which broadens its supplier relationships. The company works with Broadcom on this effort under a term sheet announced earlier. Broadcom stated that the expected timeline spans 2027 through 2029, and it does not project major activity in 2026.

Market Context and Industry Outlook

Oracle enters this phase as a long-established software company shifting deeper into cloud operations. The firm built its reputation on database products, yet cloud infrastructure now forms a significant share of revenue. Furthermore, this shift aligns with rising demand for large-scale compute platforms.

OpenAI’s plans signal the scale of future requirements, and many providers position themselves for that growth. However, shifting timelines and evolving agreements continue to shape expectations across the sector. The competitive landscape remains intense as more companies pursue advanced workloads.

Oracle’s response aimed to steady concerns, yet questions about coordination and timing persist across major projects. The company asserts that it remains on track, but the broader environment still influences market reactions. Overall, the situation reflects ongoing pressure on capacity planning within the expanding AI infrastructure space.

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