Bloomberg Intelligence Podcast

Episode: Oracle Delays Some Data Center Projects for OpenAI to 2028
Date: December 12, 2025
Hosts: Scarlet Fu, Paul Sweeney
Notable Guests: Anurag Rana (Senior Tech Analyst), Kujan Subhani (Senior Semiconductor Analyst), Poonam Goyal (Senior E-Commerce & Retail Analyst), Geetha Ranganathan (Senior Media Analyst)

Overview

This episode explores significant news and analysis in the tech, retail, and media sectors—centered around Oracle's announcement to delay certain data center buildouts for OpenAI to 2028. The discussion expands to investor sentiment on AI-related stocks like Broadcom and Oracle, Lululemon's leadership and innovation issues, and Disney's substantial strategic investment in OpenAI's Sora platform, plus analysis of a high-stakes media M&A battle involving Warner Bros. Discovery, Netflix, and Paramount.

Key Discussion Points & Insights

1. Oracle Delays Data Center Projects with OpenAI (02:37–05:20, 12:05–14:22)

Main Points:

• Oracle is experiencing delays in data center construction, affecting its ability to recognize sales from large AI contracts—most notably with OpenAI.
• Reasons for Delay: Cited as labor and material shortages, not technological setbacks.
• Impact: Will push notable sales recognition from these projects into FY28. Immediate 12-month revenue isn't expected to feel the effect.

Guest Insight (Anurag Rana, 03:01):

“If the data centers don't come online, the servers are not lit up. You really cannot transform that big backlog into sales...it's not going to be a linear line to go from funding to get the data centers lined up and then recognition.” (03:08)

• OpenAI accounts for a major portion of Oracle’s backlog:

  “That number is $500 billion. And out of that 500 billion, 300 billion. Over 300 billion is from OpenAI.” (04:36)

• The bottleneck is more about classic construction/project development (power, cooling equipment, labor) than about the hardware or software per se.

2. Semiconductor/AI Market Sentiment: Broadcom, Nvidia & More (08:34–14:22)

Main Points:

• Broadcom reported strong earnings, particularly in AI chip revenues, but stock performance remains muted due to market saturation and cautious sentiment.
• The $73 billion AI chip backlog is substantial, signaling healthy demand, but is modest compared to industry-wide hyperscaler capex outlays.

Notable Analysis (Kujan Subhani, 08:55):

“Fundamentally it was one of the great and very strong AI semis report this quarter...all the numbers up for the next year and the next two years have gone up, especially for the key area which is their AI revenue. So nothing wrong fundamentally here. It's just that state in the market when it comes to AI valuations and AI sentiment, that sort of no good news is good enough right now.” (08:58)

• OpenAI-related chip revenues for Broadcom are being pushed out to 2027, rather than late 2026, mainly due to lagging infrastructure and build-out timing.

Market Sentiment:
Institutional investors display more caution, trimming risk, and locking in gains towards year-end, with no sharp turn to bearishness (11:28).

Quote:

“There's much more cautious optimism now coming in. People are trying to be very careful. Also remember it's that time of the year where...you're not going to get a significant upside in the remaining time.” (Kujan Subhani, 11:29)

3. Retail: Lululemon’s Leadership Change and Innovation Gap (18:05–21:25)

Main Points:

• Lululemon’s quarter showed international strength (notably China), but US sales remain weak.
• Ongoing issues include lack of product innovation and differentiation, with new CEO search underway.

Insights (Poonam Goyal, 18:26; 19:35):

“The issue is still the US domestic...just lack of differentiation, product innovation over the last few years. The biggest news ... was the announcement of Calvin McDonald stepping down as CEO.” (18:34)

“We would like it to be a product led executive because we think product is key in retail...the reason Lululemon has lagged behind ... is because it hasn't stayed ahead ... in its product offerings.” (19:35)

• Price competitiveness is less of an issue than continued innovation (“The align leggings have been around for so long...But I also like aloe and it's just like, what are you giving me to make me like Lululemon so much more?” 20:23).

4. Media & AI: Disney Bets Big on OpenAI, M&A Developments (25:09–29:57)

Disney and OpenAI’s Sora (25:09–27:59)

Main Points:

• Disney announced a $1B investment and licensing deal with OpenAI’s Sora platform, granting access to 200+ iconic characters for UGC (user-generated content) initiatives.
• Goal: Monetization of IP in a brand-safe, controlled way; shifting from defense to proactive participation in AI-powered fan engagement.

Critical Perspective (Geetha Ranganathan, 25:42):

“Disney really is realizing that AI is here to stay...they want to be able to...license their characters in a safe way. It's a brand safe way, it respects copyrights and they also get to monetize their character.” (25:46)

• Disney is balancing brand protection—legal action vs. Google was mentioned—as it enables Sora access.

Major M&A in Streaming: Netflix, Paramount, Warner Bros. (28:11–29:57)

Main Points:

• Paramount has made an all-cash bid for Warner Bros. Discovery, possibly increasing its offer from $30 to $33/share, factoring in a $3B termination fee for breaking a deal with Netflix.
• Market sentiment remains skeptical about Netflix entering a potential bidding war, wary of regulatory and strategic fit.

Analyst View:

“The market is not happy with this deal. We definitely don't want to see Netflix get into this bidding war at all. There are just too many concerns from a regulatory perspective, from, from an integration perspective.” (Geetha Ranganathan, 29:10)

Notable Quotes & Moments

Oracle/OpenAI

• “If the data centers don't come online, the servers are not lit up. You really cannot transform that big backlog into sales.”
  — Anurag Rana (03:08)
• “That number is $500 billion. And out of that 500 billion, 300 billion ... is from OpenAI.”
  — Anurag Rana (04:36)

Semiconductors/AI Market

• “It's just that state in the market when it comes to AI valuations and AI sentiment, that sort of no good news is good enough right now.”
  — Kujan Subhani (08:58)

Lululemon/Retail

• “The issue is still the US domestic. The domestic business is weak ... just lack of differentiation, product innovation over the last few years.”
  — Poonam Goyal (18:34)
• "We would like it to be a product led executive because we think product is key in retail."
  — Poonam Goyal (19:35)

Media & AI

• “Disney really is realizing that AI is here to stay ... they want to be able to license their characters in a safe way. It's a brand safe way ... and they also get to monetize their character.”
  — Geetha Ranganathan (25:46)
• "The market is not happy with this deal. We definitely don't want to see Netflix get into this bidding war at all."
  — Geetha Ranganathan (29:10)

Timestamps for Important Segments

• Oracle’s Data Center Delays & AI Backlog: 02:37–05:20, 12:05–14:22
• Broadcom & Semiconductor Market Sentiment: 08:34–14:22
• Lululemon Q3 Earnings & CEO Transition: 18:05–21:25
• Disney’s OpenAI Investment & M&A Rundown: 25:09–29:57

Conclusion

This episode paints a nuanced portrait of current tech, media, and retail sector challenges and inflection points—from physical bottlenecks in AI infrastructure (Oracle/OpenAI), to shifting investor sentiment and cycles in the high-flying AI chip industry (Broadcom, Nvidia), retail leadership and innovation crises (Lululemon), and the evolving dance between legacy IP holders and AI platforms (Disney/OpenAI's Sora). Amidst it all, a major media-streaming M&A battle looms, with skepticism around escalating bidding wars and long-term strategy. The tone is analytical, data-driven, and reflective of cautious optimism as markets digest both technological progress and execution risks.