Oracle Stock Plummets Amid AI Infrastructure Delays and Earnings Shortfall
Oracle shares tumbled 4.5% Friday, capping a 13% weekly decline after Bloomberg reported delays in data center deliveries for OpenAI. The setback compounds Wednesday's earnings miss that amplified investor concerns about the company's cloud computing ambitions.
Material and labor shortages have pushed back some OpenAI-dedicated data centers by a year, though Oracle maintains all contractual milestones remain on track. The stock now trades at June levels as markets weigh Oracle's heavy borrowing to compete with Microsoft and Alphabet in AI infrastructure.
"We remain fully aligned with OpenAI," an Oracle spokesperson stated, defending the company's execution capabilities. The dual pressures of missed earnings and operational delays have created a perfect storm for the software giant's stock.