Oracle stocks dipped astir 6% connected Wednesday pursuing a study that discussions with Blue Owl Capital connected backing a $10 cardinal information halfway successful Michigan had stalled, though the unreality institution aboriginal disputed the report.
Blue Owl had been successful talks with Oracle astir backing a 1-gigawatt installation for OpenAI successful Saline Township, Michigan, according to the Financial Times.
However, the plans fell done owed to concerns astir Oracle's rising indebtedness levels and extended artificial intelligence spending, the FT reported, citing radical acquainted with the matter.
The unreality institution aboriginal said the task was moving guardant and "on schedule," but that Blue Owl was not portion of equity talks.
"Our improvement partner, Related Digital, selected the champion equity spouse from a competitory radical of options, which successful this lawsuit was not Blue Owl. Final negotiations for their equity woody are moving guardant connected docket and according to plan," Oracle spokesperson Michael Egbert said successful a statement.
Blue Owl Capital and the FT did not instantly respond to CNBC's petition for comment.
Blackstone Inc. is successful discussions to perchance regenerate Blue Owl Capital arsenic a fiscal spouse for the information center, though nary woody has been signed yet, according to the FT.
Blue Owl Capital has been the superior investor successful Oracle's information halfway projects successful the U.S., including a $15 cardinal halfway successful Abilene, Texas, and an 18 cardinal tract successful New Mexico, the FT said.
The unreality computing elephantine has $248 cardinal successful lease commitments for information centers and unreality capableness commitments implicit the adjacent 15 to 19 years arsenic of Nov. 30, the institution said successful its latest quarterly filing. That is up astir 148% from August.
In September, Oracle raised $18 billion in caller debt, according to an SEC filing. That aforesaid month, OpenAI announced a $300 cardinal concern with Oracle implicit the adjacent 5 years.
By the extremity of November, the institution owed implicit $124 billion, including operating lease liabilities, according to the filing.
Oracle shares are down astir 46% from the precocious this year.
Read the afloat FT communicative here.
Year-to-date Oracle banal chart.
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