Oracle, a company involved in developing large data facilities, has pushed back the completion of some data centers intended for OpenAI to 2028. They were originally scheduled to be completed in 2027. OpenAI, the company behind the popular ChatGPT, needs these centers for its computing requirements. Oracle is building large facilities in Abilene, Texas, specifically for OpenAI.
According to Bloomberg, the delay is due to labor and material shortages. Although the report does not specify which center or centers have been pushed back to 2028, it emphasizes that such problems are common in the data center industry. This is especially true now, as companies seek to build faster than ever because of the artificial intelligence race.
Oracle's Response
Oracle spokesperson Michael Egbert addressed the matter clearly: "There are no delays at any sites required to meet our contractual obligations, and all milestones remain on schedule." He added that Oracle is fully aligned with OpenAI and is confident that it can meet both its current commitments and future expansion plans. According to the company, this means that everything important is proceeding as planned, even if some parts are postponed.
Oracle is not building these centers alone. It is working with other developers, such as Crusoe and Vantage Data Centers. These companies are assisting with construction, which is common in the industry.
Impact on Finances and Shares
Reports of the delay also affected the company's finances. Oracle shares fell 5% on Friday morning after having already declined earlier in the week. The company announced that it had spent approximately $10 billion on data center-related expenditures during the quarter ending in November. These expenses are enormous because building such facilities costs a great deal of money.
Delays affect when cloud service providers can begin earning revenue from renting out servers. In the race to build server clusters for artificial intelligence development, tensions are rising among companies seeking to avoid responsibility for missed deadlines.
Source: bloomberg.com
