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Sources: Blue Owl Capital won't back Oracle's planned $10B, 1GW data center in Michigan, after funding talks stalled due to concerns over debt terms and delays

Investment firm concerned about tougher debt terms and the risk of delays to the vast project

Financial Times

Discussion

  • @stocksavvyshay Shay Boloor on x
    $OWL has reportedly walked away from funding $ORCL planned $10B, 1GW Michigan data center for OpenAI after talks stalled. The project is now in financing limbo as lenders push tougher terms amid concerns over Oracle's rising AI data center spend & $100B+ in net debt. [image]
  • @quinnypig.com Corey Quinn on bluesky
    Blue Owl Capital bucks current trends by having two neurons to bang together and make a spark.  [embedded post]
  • @carlquintanilla Carl Quintanilla on bluesky
    WELLS DESK, on this report:  —  “.. Blue Owl is up to its gills in data center exposure. .. lenders are getting stricter .. data center build outs now have another form of headwind that is not related to actual infrastructure build out but rather financial complexities ..”  —  ww…
  • @ljkawa Luke Kawa on bluesky
    HOOT let the bears out  —  (HOOT, HOOT HOOT HOOT HOOT)  —  www.ft.com/content/84c1...
  • @peark.es George Pearkes on bluesky
    One of the Oracle (ORCL) Stargate data centers in Michigan doesn't have financing after Blue Owl (OWL) pulled out.  Increasing signals that capital is starting to turn away from the sector having gorged for the past year.
  • @mattzeitlin Matthew Zeitlin on x
    so oracle is signing long term leases with data center developers and renting out its hoard of nvidia chips to AI companies who make short term committments. they're basically taking on wework-esque duration mismatch between the leases they pay and the leases that pay them [image…
  • @carlquintanilla Carl Quintanilla on bluesky
    “.. Blackstone has held talks to step in as a financial partner, but has not yet signed a deal to invest in Oracle's data centre, the people said.”  —  @financialtimes.com $ORCL  —  www.ft.com/content/84c1...  [image]