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Blue Owl Quits Oracle’s Michigan AI Data Center Plan, Putting Financing in Flux

Oracle says negotiations for a new equity partner remain on track despite incentive uncertainty and tighter lending terms.

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Oracle co-founder Larry Ellison has positioned the firm as a major player in artificial intelligence data center ventures

Overview

  • Financial Times reported that Blue Owl Capital walked away from the Michigan project, and Oracle shares fell about 5.4% on Wednesday.
  • Oracle disputed the FT account, saying its development partner selected a different equity backer and that talks are progressing on schedule.
  • Blackstone is reported to be in discussions to provide equity, while Bank of America is said to be arranging roughly $14 billion in debt financing.
  • Michigan lawmakers are weighing changes to data center tax incentives that underpin the project’s economics, even as Governor Gretchen Whitmer backs a roughly $7 billion Saline Township proposal described elsewhere as a $10 billion partnership.
  • The setback fed broader tech weakness with declines in AI-linked chip stocks, though shares recovered Thursday as markets rebounded and separate news lifted Oracle after hours.