WASHINGTON (dpa-AFX) - Oracle has come out suggesting that their talks with Blue Owl Capital about funding a big data center project in Michigan had hit a snag.
This news raised new concerns among investors regarding how the funding for large-scale AI infrastructure is being handled.
The Financial Times noted that Blue Owl and Oracle had been discussing the possibility of funding a 1-gigawatt data center in Saline Township, Michigan, which was meant to support OpenAI workloads.
However, the negotiations reportedly fell apart due to worries over Oracle's increasing debt and its heavy investments in AI, according to sources close to the situation.
This news didn't just affect Oracle; it also had an impact on other AI-related stocks, with Broadcom, Nvidia, AMD, and CoreWeave all seeing significant drops in their shares.
Sources mentioned that Blue Owl ultimately decided to walk away from the deal due to unfavorable debt terms, repayment conditions, and potential delays related to local political issues in Michigan. Despite this, they are still involved in two other data center projects with Oracle.
Oracle responded to the report by stating that the Michigan project is still moving forward and that Blue Owl isn't part of its current equity discussions.
The company mentioned that its development partner has chosen a different equity backer and that negotiations are going ahead as expected.
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