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Oracle counters reports of delays in its AI-focused data centre projects for OpenAI, reiterating confidence in meeting contractual milestones despite industry speculation and aggressive expansion plans.
Oracle has pushed back against recent reports that labour and material shortages have delayed the completion of data centres it is building for OpenAI, saying its commitments remain on schedule. According to the original report, Oracle spokesperson Michael Egbert told Reuters: “There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track. We remain fully aligned with OpenAI and confident in our ability to execute against both our contractual commitments and future expansion plans.” [1][2]
The disputed projects form part of Oracle’s broader involvement in the Stargate network of AI-focused data centres, which includes sites such as the live Abilene, Texas facility developed by Crusoe, Vantage’s Stargate Wisconsin site, Related Digital’s 1GW Michigan centre, and the UAE–US AI Campus. The lead account noted Oracle is a backer of the OpenAI joint venture and is supplying critical capacity for the partnership. [1]
Oracle has reiterated this constructive posture publicly during earnings commentary. In its recent call, co‑CEO Clay Magouyrk described the company’s data‑centre buildout as “ambitious” but “achievable,” a stance that the company says remains accurate despite external reporting of postponements. According to the original report, the company’s public statements reflect confidence in meeting contractual timelines. [1]
The dispute over timing arrives amid a dramatic expansion of Oracle’s data‑centre commitments. Industry reporting and Oracle’s SEC filing show the company disclosed roughly $248 billion of additional lease commitments as of November 30, 2025, largely linked to data‑centre and cloud capacity arrangements expected to commence between Oracle’s third fiscal quarter of 2026 and fiscal 2028. The Information and other industry summaries say Oracle signed about $150 billion of new data‑centre lease commitments in the most recent quarter, and that its customer commitments total around $523 billion over the next five years. The SEC filing noted most of those leases carry terms of fifteen to nineteen years. [1][7][6]
Investors have been attentive to the scale and financing of the expansion. Oracle’s forecast and increased spending plans prompted concerns: the company reported a shortfall versus Wall Street expectations and flagged a $15 billion increase in capital expenditure for fiscal 2026, primarily to support AI cloud data‑centre initiatives. That guidance and the market’s reaction contributed to a notable share‑price decline; Oracle’s shares fell sharply after its earnings release and again following reports of alleged data‑centre delays, though they remained ahead year‑to‑date at the time of reporting. Market analysts described the moves as creating short‑term volatility but said many investors remain bullish on AI’s long‑term prospects while warning of overvaluation risks. [3][4][1]
Questions about Oracle’s deep reliance on OpenAI and the debt‑fuelled nature of the buildout have also been aired by market commentators. Reporting highlighted investor concerns over sustainability given OpenAI’s reported unprofitability and the magnitude of Oracle’s commitments , outcomes that have attracted scrutiny as Oracle accelerates capital allocation toward AI infrastructure. Oracle, for its part, has maintained that milestones are on track and that it is aligned with OpenAI on execution and future expansion. [5][1]
Taken together, the company’s statements, the SEC disclosure and industry reporting paint a picture of an aggressive, capital‑intensive expansion to underpin AI cloud capacity and long‑term customer commitments , a strategy that Oracle says it can deliver on, even as some market participants weigh the short‑term financial and execution risks. [1][7][3]
📌 Reference Map:
##Reference Map:
- [1] (Data Center Dynamics) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 5, Paragraph 6, Paragraph 7
- [2] (Reuters) – Paragraph 1, Paragraph 5
- [3] (Reuters) – Paragraph 5, Paragraph 7
- [4] (Reuters) – Paragraph 5
- [5] (Reuters) – Paragraph 6
- [6] (GuruFocus) – Paragraph 4
- [7] (The Information) – Paragraph 4, Paragraph 7
Source: Fuse Wire Services
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