Recent reports suggest that infinite growth, particularly in AI infrastructure, may not be feasible. Bloomberg highlighted Oracle’s delay in data center projects for OpenAI, pushing completion from 2027 to 2028 due to labor and material shortages. This news triggered a sell-off on Wall Street, revealing concerns about the economic sustainability reliant on AI investments. The delays hinder AI companies’ ability to generate revenue, further delaying the financial viability of the sector. Factors contributing to these delays include a shortage of skilled construction workers and increased material costs, partly due to tariffs. Despite previously strong forecasts, Oracle’s recent earnings report indicated stagnation, raising doubts about its financial commitments. The company’s significant revenue projections, reliant on data center agreements, may not be as solid as believed, leading to a growing unease among investors regarding the long-term feasibility of these multi-billion-dollar AI deals. This situation underscores the fragility of AI market confidence.
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