Report: Oracle's $10 billion AI data center financing is hindered as long-term partner Blue Owl withdraws

Wallstreetcn
2025.12.17 13:30
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Oracle Corporation has encountered a significant setback in its AI infrastructure expansion plan, as its largest partner Blue Owl Capital withdraws from the $10 billion data center financing. This news caused Oracle's stock price to drop 2% in pre-market trading. Oracle's cash flow is tight, with its stock price falling over 40% since the peak in September. Although Blackstone has intervened in negotiations, no agreement has been signed yet, and the financing outlook remains uncertain. Oracle stated that its development partner Related Digital has chosen the "best equity partner," and negotiations are ongoing

Oracle Corporation has encountered a significant setback in its ambitious artificial intelligence (AI) infrastructure expansion plans, as its largest data center partner, Blue Owl Capital, has decided to withdraw support for a new $10 billion facility deal for the software group. Following the news, Oracle's stock price fell 2% in pre-market trading.

On December 17, according to the Financial Times, three informed sources revealed that Blue Owl had previously been in discussions with lenders and Oracle to invest in a data center in Saline Township, Michigan, with a planned capacity of up to 1 gigawatt, intended to serve OpenAI. However, as negotiations stalled, Blue Owl's planned agreement to arrange up to $10 billion in financing and make a significant equity investment will not proceed.

This financing turmoil directly exposes the increasingly strained funding chain of Oracle's AI infrastructure strategy. The company's large-scale spending and aggressive debt financing actions in recent months have raised market concerns, leading to a more than 40% drop in its stock price from the September peak, with bonds also facing sell-offs.

Reports indicate that, according to informed sources, although Blackstone has negotiated to intervene as a financial partner, no investment agreements have been signed yet, leaving the financing prospects for the Michigan facility highly uncertain.

Currently, Oracle has not formally signed agreements with new supporters. Oracle responded that its development partner, Related Digital, has selected the "best equity partner" from competitors and stated that final negotiations are proceeding as planned. Related Digital declined to disclose the specific partner's name, only stating that it is in the "final stages of due diligence."

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