The delay adds fresh pressure to a stock already hit by disappointing earnings earlier in the week. Oracle shares had fallen nearly 5% by mid-session, extending a two-day selloff that has spilled across the broader tech sector.
Investors reacted swiftly because the OpenAI partnership is critical to Oracle’s cloud ambitions. The company is relying heavily on this multiyear, $300 billion AI infrastructure agreementwhich has become central to Wall Street’s expectations for Oracle’s growth in 2026 and beyond.
Bloomberg reported that the new schedule reflects labor shortages, material supply delaysand slower-than-expected construction progress at several major data-center sites. The timeline shift could push back revenue tied to OpenAI’s expanding compute needs, raising concerns about timing mismatches between Oracle’s heavy capital spending and when those investments will start to generate returns.
Neither Oracle nor OpenAI responded to Reuters’ request for comment, and Reuters has not independently verified the report. But investors are growing uneasy because Oracle has already committed to massive infrastructure spending to meet OpenAI’s scale requirements.
The company warned in its earnings report on Wednesday that fiscal 2026 capital expenditures will be $15 billion higher than it projected in September. Analysts say the updated guidance confirms how aggressively Oracle is investing to keep pace with AI infrastructure leaders such as Microsoft and Amazon.
Tech stocks slide as Oracle-led selloff spreads across AI sector
The sharp drop in ORCL triggered a broader pullback in high-growth tech names. Nvidia, AMD, Micron and Arm fell 3% to 6%signaling renewed caution around AI supply-chain risks and long-term cost pressures across the semiconductor and cloud ecosystem. Markets were already on edge after Oracle’s earnings release this week showed softer cloud revenue and a weaker forecast for upcoming quarters. The latest delay in OpenAI-linked data centers intensified those concerns, fueling a wide risk-off move in the Nasdaq.
Analysts say Oracle’s stock reaction shows how deeply the company’s valuation is now tied to the AI boom. Any construction delay, cost overrun or revenue timing shift is enough to trigger volatility across related AI infrastructure and chip stocks.
Why analysts say Oracle’s debt-funded AI expansion is raising red flags
Analysts are increasingly focused on Oracle’s dependence on debt to finance its massive AI datacenter expansion, much of it tied to a $300 billion OpenAI infrastructure contract. Oracle’s total debt is estimated at $105–110 billionwith projections suggesting liabilities could reach $290 billion by 2028far outpacing earnings growth. Free cash flow remains negative, raising questions about the sustainability of Oracle’s current investment cycle.
Concerns are intensifying because a significant share of Oracle’s capital expenditures is concentrated in OpenAI-linked projectsexposing the company to counterparty risk. OpenAI, valued near $500 billionis still unprofitable and may require more than $1 trillion in cumulative spending by 2030. Credit markets are reacting: Oracle’s credit default swaps have climbed to record highsand leverage ratios now exceed 4x debt-to-equityreflecting warnings from Moody’s and Morgan Stanley about elevated default risk if the AI spending trajectory persists.
The market’s response has been sharp. Oracle shares have fallen 30% from recent highs, erasing gains tied to its expanding backlog and fueling broader concerns of an emerging AI bubble. While a $400+ billion backlog provides long-term revenue visibility, analysts such as Gil Luria caution that Oracle may be forced to scale back its datacenter build-out or take write-downs if OpenAI’s funding environment weakens. Bond prices have also dropped by 6%underscoring deepening investor doubts over Oracle’s ability to manage its growing debt load.
With the OpenAI delay pushing expected returns into 2028, analysts warn that Oracle may face a widening gap between spending and cash flow. Barron’s reported rising concern over Oracle’s credit default swaps, reflecting heightened market attention to financial risks tied to its AI strategy.
Despite these concerns, some analysts still expect strong long-term demand for compute tied to OpenAI and enterprise AI workloads. But most agree the short-term picture has become more complicated. The market wants evidence that Oracle can deliver on its promises without further delays or cost overruns.