Dec 12 (Reuters) – Oracle denied on Friday a media report that it was delaying OpenAI-related data centers, following investor worries over its debt-fueled AI infrastructure buildout.Bloomberg News had earlier in the day reported that Oracle had pushed back the completion dates for some data centers it is developing for OpenAI to 2028, a year later than planned, due to labor and material shortages.”There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track,” Oracle spokesperson Michael Egbert told Reuters in an emailed statement.”We remain fully aligned with OpenAI and confident in our ability to execute against both our contractual commitments and future expansion plans,” Egbert added.Shares of Oracle, which had fallen 3.6% following the report, pared some losses to be down by 2.8% in afternoon trading. Other AI-related shares also tumbled, with chip giant Nvidia, Advanced Micro Devices, Micron and Arm Holdings down between 2% and 4.5%.The Bloomberg report came a day after Oracle logged its biggest stock drop since late January, following earnings that showed rising spending and a weak outlook for a company that is increasingly reliant on OpenAI. Long a smaller cloud-computing player, Oracle has leaped into the artificial intelligence infrastructure race this year on the back of a $300 billion OpenAI data-center deal. But the buildout has forced the company to borrow aggressively. Investors, spooked in recent weeks by signs that Google was pulling ahead in the AI race and by Oracle’s rising debt load, have sold off the company’s stock and bonds. The cost of insuring Oracle’s debt against default surged on Thursday to its highest in at least five years and was up again on Friday.The shares are up just 13% now for the year, having erased all the gains from a 36% jump in September, when it reported a massive backlog of over $450 billion — mostly tied to OpenAI.Investors have been growing more picky in the AI space, with less willingness to indiscriminately reward spending on AI, even as they bet on its long-term potential. OpenAI did not immediately respond to a Reuters request for comment.After the Bloomberg report, some analysts said the news showed bottlenecks beyond chips were emerging for the data-center expansion tech companies are financing with hundreds of billions of dollars in investment.”Concerns about the ability to build data centers due to construction delays, power availability and other practical factors are becoming a much bigger factor than the expected demands for AI capabilities,” Bob O’Donnell, chief analyst at TECHnalysis Research, said. But he added that the market has become more sensitive to news of AI delays as investors scrutinize payoffs from the spending.Broadcom was also down more than 11% on Friday, after warning that rising sales of lower-margin custom AI processors were squeezing profitability, stirring fears the business may be less lucrative.(R in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Oracle denies report on OpenAI data center delays
