Episode summary
Oracle Delays Some Data Center Projects for OpenAI to 2028 | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Kristine Aquino · Guests: Anurag Rana, Kunjan Sobhani, Poonam Goyal, Geetha Ranganathan
Summary
Oracle’s delayed data center buildout for OpenAI is the latest reminder that AI infrastructure revenue can slip even when demand is enormous. A guest said the issue is not a technology problem but the messy reality of power, labor, cooling equipment and materials, and argued that the timing shift from 2027 to 2028 should hurt Oracle’s FY28 sales more than near-term results. The guest also said Oracle’s backlog is about $500 billion, with more than $300 billion tied to OpenAI.
Broadcom’s earnings were presented as fundamentally strong, but not strong enough to excite a market that has become more demanding on AI valuations. The guest said Broadcom beat expectations, raised AI revenue guidance by 20% above the Street for next quarter, and still saw its stock fall because investors are no longer rewarding good news the same way. That caution extended across semis, where the guest described a shift from bullish to cautious optimism as portfolio managers trim exposure late in the year.
Lululemon’s stronger quarter and raised full-year outlook were overshadowed by weakness in U.S. demand and the announcement that Calvin McDonald will step down as CEO. The guest said the company needs a product-led leader and more innovation to regain differentiation. Disney’s $1 billion OpenAI deal was framed as a defensive and monetization play: license characters in a brand-safe way, protect copyrights, and gather data on how fans use AI-generated content.
Key takeaways
- Oracle’s OpenAI-related buildout delay looks like a timing problem, not a demand problem, but a guest said it could hit FY28 sales.
- Broadcom’s AI backlog and raised AI revenue outlook still did not prevent a stock drop because the market is skeptical of rich AI valuations.
- A guest said hyperscaler capex still supports Broadcom’s ASIC demand, even if overall AI sentiment has cooled.
- Lululemon’s U.S. business remains weak, and the CEO change matters most if the new leader is product-focused.
- Disney’s OpenAI deal is meant to protect IP, monetize characters and learn from AI fan behavior, according to a guest.
Notable quotes
“they are having some delay in getting the data centers online. And as we know, if the data centers don't come online, the servers are not lit up”
“That number is $500 billion. And out of that 500 billion, 300 billion over 300 billion is from OpenAI”
“I could not find a lot wrong in the numbers. I mean they upsided their AI revenue numbers by 20% above the street for next quarter”
“This is in my mind a classic overpromise and now underdel. You're supposed to do the exact opposite”
“earnings for the quarter showed strength, but the guidance was weaker. And the strength really came from outside of the US”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Big story uh in the tech space today.
Oracle uh with some news out there uh talking about maybe pushing back some of their roll out. It's been a little bit of a headwind for just the last several trading sessions for some of these AI names. Oracle stock off 5.8% today.
Joining us is Anor Rana, senior tech analyst for Bloomberg Intelligence. Anra, what's what's the latest from our friends at Oracle? Yeah, from what I just heard is that they are having some delay in getting the data centers online.
And as we know, if the data centers don't come online, the servers are not lit up. You really cannot transform that big backlog into sales. And I think that has been a big concern for everybody.
This just shows that it's not going to be a linear line to go from funding to get the data centers lined up and then recognition. So I think that's a hiccup for them. it, you know, in our calculations, it does impact their FI28 sales, but not the ones that, you know, in the next, let's say, 12 months.
Now, Honor, you know, Paul and I were noting earlier that the delay seems to be sided to labor and material shortages, right? And so, could you just break it down a little bit for our listeners? What actually is involved in uh this data center buildout, which and and why is it so subject to the potential for delay such as this?
See, it's no different than building any manufacturing factory or anything else.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- oracle ai data centers
- openai capex timelines
- ai semiconductor outlook
- semiconductor earnings
- disney openai licensing
Companies and tickers mentioned
- ORCL
- AVGO
- NVDA
- LULU
- DIS
- Oracle
- OpenAI
- Broadcom
- Nvidia
- Lululemon Athletica
- Walt Disney
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Intelligence
-
Instant Reaction: Nvidia CEO Jensen Huang Ousted by Nvidia Board | Bloomberg Intelligence -
Nvidia’s Huang Ousted by Board in Move That Roils AI Economy | Bloomberg Intelligence -
CoreWeave Shares Soar After AI Computing Firm Eases Debt Fears | Bloomberg Intelligence -
Anthropic Targets $1.4 Trillion Valuation in Blockbuster IPO | Bloomberg Intelligence -
Nvidia Probe Into CEO Affair Raises Thorny Questions for AI | Bloomberg Intelligence -
Election 'Blue Wave' & Your Wallet; Navigating AI-Driven Market Volatility | Bloomberg Intelligence
Bloomberg Intelligence, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
