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What is the news on Oracle and OpenAI?

Asked 2 hours ago

Answer

Oracle and OpenAI face scrutiny over data center expansion and financial commitments. Reports of delays in Oracle's data centers for OpenAI surfaced, attributed to capital constraints, but Oracle denies any delays, affirming all milestones are on track. Investors remain concerned about Oracle's debt, financing strategies, and whether OpenAI can meet its contractual obligations, with broader implications for the tech sector's AI infrastructure buildout.

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CNBC

Oracle says 'no delays' in OpenAI arrangement after stock slide

CNBC ยท Just In
CNBC
CNBC
Just In
  • Oracle denies reports of data center delays for OpenAI 6s
  • All contractual milestones with OpenAI remain on track 12s
  • Oracle reiterates alignment with OpenAI after earlier delay reports 28s
  • Oracle stock recovers from session lows but remains down 2.8% 43s
  • Oracle's credit default swaps decline alongside stock performance 58s

References

Oracle says 'no delays' in OpenAI arrangement after stock slide
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CNBC
3 hours ago
Oracle says 'no delays' in OpenAI arrangement after stock slide

Oracle spokesperson refutes reports of delays in data centers for OpenAI, stating all contractual commitments and milestones are on track and the company remains fully aligned with OpenAI.

Oracle says 'no delays' in OpenAI arrangement after stock slide
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CNBC
3 hours ago
Oracle says 'no delays' in OpenAI arrangement after stock slide

Oracle emphasizes full alignment with OpenAI and confidence in meeting both current and future expansion plans, referencing their $300 billion deal.

Delays in some Oracle data centers for OpenAI
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CNBC
5 hours ago
Delays in some Oracle data centers for OpenAI

CoreWeave reported data center delays, citing weather and CoreScientific, but analysts suggest concerns about OpenAI's ability to pay for compute capacity and whether Oracle and CoreWeave have enough capital to deploy resources.

Delays in some Oracle data centers for OpenAI
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CNBC
5 hours ago
Delays in some Oracle data centers for OpenAI

Oracle is near its borrowing limit, at the bottom rung of investment grade, making it difficult to raise additional capital while maintaining investment grade status, raising concerns for OpenAI and CoreWeave.

Oracle slides on AI spending, erases over $100B in market value
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Bloomberg
1 day ago
Oracle slides on AI spending, erases over $100B in market value

A major concern is whether OpenAI, possibly Oracle's largest customer, has the financial resources to pay for Oracle's infrastructure amid Oracle's creative financing strategies and substantial debt.

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