<span>Story: Oracle shares fell 6% on Wednesday morning after a major financial partner said it would not fund large-scale artificial intelligence data centers.</span><span>Negotiations between Blue Owl Capital and Oracle, which plans to build a $10 billion data center in Saline Township, Michigan, have broken down, a source told Reuters.</span><span>The data center is designed to serve OpenAI.</span><span>A few months ago, Oracle entered the artificial intelligence race by signing a massive deal with OpenAI to provide computing power to the parent company of ChatGPT.</span><span>But the deal proved costly for Oracle, which had to borrow heavily to build out its AI infrastructure…and its rising debt alarmed investors.</span><span>Oracle last week also denied media reports that it was delaying the construction of OpenAI-related data centers due to labor and material shortages.</span><span>A key issue for Blue Owl is that it views the existing lease for the Michigan project as less favorable than the leases it helped structure in other deals with Oracle, sources said.</span><span>Blue Owl is a major backer of Oracle’s largest data center project in the United States, investing its own capital and raising billions of dollars in debt, according to the Financial Times, which first reported the development.</span><span>Oracle shares have fallen more than 15% since it reported quarterly earnings last week, as its huge spending and weak forecasts cast doubt on whether big bets on artificial intelligence will pay off quickly.</span><span>Oracle did not immediately respond to a request for comment.</span>
