Oracle says there have been 'no delays' in OpenAI arrangement after stock slide

Oracle has responded firmly to a recent report suggesting that the completion of data centers for OpenAI, one of its key clients, has been pushed back to 2028 instead of the initially planned 2027. This change, as reported by Bloomberg, was attributed to ongoing shortages in labor and materials. Following the news, Oracle's stock experienced a significant drop, reaching a session low of $185.98, marking a 6.5% decline from the previous day's close. In an official statement to CNBC, an Oracle spokesperson emphasized that the timelines for site selection and delivery were developed in close collaboration with OpenAI and that there have been no delays in meeting their contractual obligations. All project milestones are reportedly still on schedule. However, the spokesperson did not provide a specific timeline for when the cloud computing infrastructure for OpenAI would be operational. Last month, OpenAI announced a partnership with Oracle valued at over $300 billion for the next five years, highlighting the importance of this collaboration. Clay Magouyrk, one of Oracle's newly appointed co-CEOs, expressed confidence in the partnership during an October analyst meeting, noting the positive relationship between Oracle and OpenAI. This collaboration marks a shift for Oracle, which has traditionally focused on its database software and business applications, but is now seeing its cloud infrastructure segment contribute more than a quarter of its revenue. In the context of increasing demand, OpenAI is also exploring partnerships with other companies. For instance, in September, Nvidia revealed plans to deploy at least 10 gigawatts of equipment for OpenAI, with the first phase expected to start in late 2026. However, Nvidia has cautioned that these plans are not guaranteed to materialize into formal agreements. Additionally, OpenAI has been historically dependent on Nvidia's graphics processing units to power its products like ChatGPT, while also considering the development of custom chips in collaboration with Broadcom. During a recent earnings call, Broadcom CEO Hock Tan outlined a longer timeline for the OpenAI initiative, suggesting that significant progress may not occur until 2027 or 2028, with little expected in 2026. OpenAI has opted not to comment on the matter.