Oracle Stock Draws Investor Attention After Buildout Of Some Data Centers For OpenAI Reportedly Pushed to 2028

• Oracle and OpenAI struck a $300 billion contract in September, with the former agreeing to build out data centers with a total capacity of 4.5 gigawatts.
• Oracle CEO Clay Magouyrk stated during the company’s second-quarter earnings call that work at its supercluster in Abilene, Texas, is on track.
• He revealed that Oracle had already delivered 96,000 Nvidia Grace Blackwell GB200 chips at the facility.

Oracle Corp. (ORCL) shares were in the spotlight on Friday after the timeline for some of the data centers that it is building for its Project Stargate partner, OpenAI, has reportedly been pushed back to 2028 from 2027.

According to a Bloomberg report citing people familiar with the matter, the delay in the data center buildout is due to labor and material constraints.

This comes amid concerns around the timing mismatch in Oracle’s artificial intelligence buildout expenses and revenue conversion.

Oracle shares were down nearly 6% in Friday morning’s trade. Retail sentiment on Stocktwits around Oracle trended in the ‘extremely bullish’ territory, while users felt ‘bearish’ about OpenAI at the time of writing.

OpenAI Contract

Oracle and OpenAI struck a $300 billion contract in September, with the former agreeing to build out data centers with a total capacity of 4.5 gigawatts.

Oracle CEO Clay Magouyrk stated during the company’s second-quarter (Q2) earnings call that work at its supercluster in Abilene, Texas, is on track. Magouyrk revealed that Oracle had already delivered 96,000 Nvidia Corp. (NVDA) Grace Blackwell GB200 chips at the facility.

“Our unique combination of infrastructure and applications differentiates us from other hyperscalers. We have ambitious, achievable goals for capacity delivery worldwide,” he said, adding that Oracle handed over nearly 400 megawatts in data center capacity to its customers in the previous quarter.

Accelerating Pace Of Delivery

The Oracle CEO also added that the company is continuing to accelerate the pace of delivery of data center capacity.

He also stated that the demand for AI infrastructure across training and inference remains strong.

On Thursday, analysts cut their price targets on ORCL stock following the company’s mixed Q2 performance. BofA Securities analysts pointed to a timing mismatch between Oracle’s AI buildout expenses and revenue conversion.

While Oracle’s cloud infrastructure revenue grew 68% year-on-year to $4.1 billion, and its capital expenditure rose to $12 billion, which was $4 billion higher than analyst estimates.

ORCL stock is up 12% year-to-date and 7% over the past 12 months.

Also See: Trump’s ‘Core 5’ Club Raises Eyebrows: New Supergroup Reportedly Leaves Out European Allies, Includes China And Russia

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