Oracle said talks for an equity deal to support its Michigan data center project remain on schedule. The company also confirmed that Blue Owl Capital is no longer part of the discussions. This statement followed a report that suggested stalled negotiations, which pushed Oracle shares down five percent on Wednesday.
Project Linked to Stargate AI Push
More than one gigawatt data center project is planned for Saline Township, Michigan. It forms part of the Stargate AI infrastructure effort led by Oracle and OpenAI. Previously, Oracle said construction is set to begin in early 2026. That timeline remains unchanged.
Blue Owl Exits Negotiations
Blue Owl Capital, Oracle’s largest data center partner, had discussed backing the ten billion dollar project. However, the two sides failed to agree on terms. According to a source familiar with the talks, the proposed deal did not match the conditions Blue Owl had accepted in earlier Oracle projects.
In particular, the source said the project’s lease structure and debt terms were less attractive. As a result, Blue Owl chose not to proceed. The source requested anonymity because the discussions were private.
Investor Concerns Grow
Meanwhile, investors have closely watched Oracle’s AI infrastructure expansion. Concerns have grown as the company’s debt increases. At the same time, Oracle’s future has become more closely tied to OpenAI.
OpenAI, which is valued at about five hundred billion dollars, continues to lose money. It has also not explained how it plans to fund more than one trillion dollars in infrastructure spending by 2030.
Oracle Shares Under Pressure
Oracle shares have fallen roughly forty percent since mid September. This drop erased gains from an earlier rally driven by news of nearly four hundred fifty-five billion dollars in booked cloud orders. Most of those orders were linked to OpenAI.
In addition, the stock has declined by fifteen percent since last week’s earnings report. That update raised fresh doubts about returns from Oracle’s AI investments.
New Equity Partner Still Undisclosed
An Oracle spokesperson said its development partner, Related Digital, selected a different equity partner from several options. In this case, Blue Owl was not chosen. The company declined to name the new partner or share further details.
A Related Digital representative said full construction should begin in the first quarter of 2026. The firm also said the project attracted strong interest from equity investors and that all options were reviewed.
However, according to the Financial Times, Oracle has not yet signed a final agreement with a new backer.
