Oracle’s AI Expansion Hits Snag As Key Investor Pulls Back: Report
Synopsis
According to the Financial Times report, the withdrawal comes amid growing concerns over Oracle’s rising debt and rapid spending on artificial intelligence infrastructure.
Oracle Corp. (ORCL) reportedly faces a setback in its AI data center expansion as its major funding partner, Blue Owl Capital, withdrew from a $10 billion investment for a new facility in Saline Township, Michigan.
According to the Financial Times report, the withdrawal comes amid growing concerns over Oracle’s rising debt and rapid spending on artificial intelligence infrastructure.
Funding Uncertainty
Blue Owl had been negotiating both equity investment and debt arrangements for the planned 1-gigawatt facility serving OpenAI. However, discussions stalled, leaving the project’s financing in limbo, according to the report.
The situation highlights growing pressure on Oracle’s AI infrastructure strategy. According to the report, the company has heavily invested in AI data centers while increasing its debt, which now totals roughly $105 billion, up from $78 billion last year.
Oracle stock traded over 1% lower in Wednesday’s premarket.
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