Overview
- Reports indicate Blue Owl stepped back from a planned $10 billion financing for Oracle’s Michigan AI data center, intensifying questions about how the company will fund its buildout after mixed results and higher capex guidance.
- Oracle shares bounced after reports that a consortium including Oracle, Silver Lake, and Abu Dhabi‑backed MGX would acquire a sizable minority stake in a new U.S. TikTok entity, with Oracle expected to serve as a trusted security partner subject to approvals.
- The company continues to expand capacity quickly, citing 147 data center regions live with 64 more in the pipeline and large customers such as OpenAI relying on its infrastructure.
- Wall Street remains divided, with RBC cutting its price target to $250 and Citizens keeping a Market Outperform at $342, while Jim Cramer warned the company is debt‑laden and may need to raise more capital.
- Broader AI infrastructure demand stays robust, with Bank of America forecasting about 30% semiconductor sales growth in 2026 and firms like Truist boosting Nvidia targets, even as sector suppliers from chips to storage see strong investor interest.