Oracle's AI Data Setback

Oracle's AI expansion plans have suffered a setback after Blue Owl Capital withdrew from a $10 billion investment for a data centre project in Michigan. The withdrawal has sparked concerns about Oracle's increasing debt and rapid expenditure on AI infrastructure. The data centre, intended to support OpenAI, was planned to deliver one gigawatt of capacity.

Investor anxiety has grown around the cost of Oracle's AI ambitions, with the company committing billions to expand cloud capacity. Oracle's shares have declined, reflecting unease about heavy spending and future returns. Despite the setback, Oracle maintains that its first data centre for OpenAI in Abilene, Texas, remains on track.

Shortages of skilled labour and materials have also contributed to delays in completing data centres. Oracle had signed a $300 billion contract with OpenAI to supply computing power, but completion dates for some data centres have been pushed back. The company anticipates capital expenditure to reach $50 billion in fiscal year 2026.