Oracle stock dips on report Blue Owl won’t back $10B data center

Seer Shares fell nearly 6% following a report following the talks Wednesday. Blue Owl Capital Although the cloud company later disputed the report, its project to support a $10 billion data center in Michigan had stalled.

Blue Owl was in talks with Oracle about financing a 1 gigawatt facility for OpenAI in Saline Township, Michigan. Finance Times.

But the plans fell through due to concerns about Oracle’s rising debt levels and extensive artificial intelligence spending, the FT reported, citing sources familiar with the matter.

The cloud company later said the project was proceeding “as planned” but that Blue Owl was not part of the equity talks.

“Our development partner, Related Digital, selected the best equity partner from a competitive set of options, which in this case was not Blue Owl. Final negotiations for the equity agreements are proceeding as planned and as planned,” Oracle spokesman Michael Egbert said in a statement. he said.

Blue Owl Capital and the FT did not immediately respond to CNBC’s request for comment.

Although no deal has yet been signed, Blackstone Inc. is in talks to potentially replace Blue Owl Capital as the data center’s financial partner, according to the FT.

The FT said Blue Owl Capital is the main investor in Oracle’s US data center projects, including the $15 billion center in Abilene, Texas, and the $18 billion site in New Mexico.

The company stated that as of November 30, the cloud computing giant had $248 billion in lease commitments for data centers and cloud capacity commitments for the next 15 to 19 years. most recent quarterly filing. This was up almost 148% from August.

Oracle in September $18 billion It is in new debt, according to its SEC filing. That same month, OpenAI announced a $300 billion partnership with Oracle over the next five years.

As of the end of November, the company had more than $124 billion in debt, including operating lease obligations, according to the filing.

Oracle shares are down nearly 46% from this year’s high.

Read the full FT story Here.