Oracle shares fell 5% on Wednesday after a report from the Financial Times indicated that Blue Owl Capital had pulled out of talks to fund a $10 billion data center project in Saline Township, Michigan, intended to support OpenAI. The project, which would include a 1-gigawatt facility, was reportedly stalled due to concerns over Oracle’s rising debt levels and heavy spending on artificial intelligence initiatives. Blue Owl had been in advanced discussions to provide equity financing for the Michigan site, but ultimately walked away, according to people familiar with the matter. The decision was driven by unfavorable debt terms, repayment structures, and concerns about potential construction delays due to local political challenges in Michigan. Despite this, Blue Owl remains involved in two other Oracle data center projects, the source said. In response, Oracle and its development partner, Related Digital, pushed back on the report. Oracle spokesperson Michael Egbert stated that the project is still moving forward and that Blue Owl was not part of the final equity discussions. He clarified that Related Digital had selected a different equity partner from a competitive pool of options, and that final negotiations were on schedule. Related Digital spokesperson Natalie Ravitz confirmed the project was progressing, noting strong support from Michigan Governor Gretchen Whitmer. She declined to name the new equity partner but said it brought “unparalleled expertise” to the project. Construction is expected to begin in the first quarter of next year. CNBC reported that Blackstone is now in talks to potentially replace Blue Owl as the financial partner, though no agreement has been finalized. Blue Owl has previously backed major Oracle data center ventures, including a $15 billion facility in Abilene, Texas, and an $18 billion site in New Mexico. Analysts at Evercore ISI noted that while Blue Owl exited this deal, it does not reflect a broader failure in its strategy. They emphasized that digital infrastructure remains a core growth area for Blue Owl, including an upcoming digital infrastructure fund expected in 2026. Oracle’s data center ambitions are massive. As of November 30, the company had $248 billion in lease commitments for data centers and cloud capacity over the next 15 to 19 years—a nearly 148% increase from August. In September, Oracle raised $18 billion in new debt and now owes over $124 billion in operating lease liabilities. Despite these investments, Oracle shares have declined about 50% from their September peak of $345.72. Other AI-related stocks also dropped Wednesday, including Broadcom (-4%), Nvidia (-3%), AMD (-5%), and CoreWeave (-7%).