Oracle stock falls as OpenAI data center completion pushed to 2028

Investing.com -- Oracle Corporation (NYSE: ORCL) stock fell 5% on Friday, extending its recent decline after Bloomberg reported that the company has delayed the completion of data centers for OpenAI to 2028 from the original 2027 target.

The postponement is primarily attributed to labor and material shortages, according to people familiar with the project who asked not to be identified. Oracle has been working to fulfill a $300 billion contract to provide computing power for training and running OpenAI’s models since the agreement was signed this summer.

Despite the delays, the timeline for these U.S. projects remains ambitious, as they are set to become some of the largest data centers in the world. The news comes just a day after Oracle shares closed sharply lower following softer-than-expected quarterly results.

The broader market also struggled on Friday, with the S&P 500 falling 1.25% and the Nasdaq dropping 2%. Broadcom’s latest results added to growing concerns about a potential bubble in artificial intelligence stocks, compounding worries that had already been sparked by Oracle’s disappointing performance.

Oracle’s stock decline contributed to the technology sector’s weakness, which has been weighing on major indices as investors reassess valuations in the AI space.

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