Blue Owl Capital has withdrawn from Oracle’s $10 billion, 1‑gigawatt data‑center project in Saline Township, Michigan, a decision reported by the Financial Times on December 17, 2025. The project, part of Oracle’s $500 billion Stargate AI‑infrastructure initiative, was intended to provide large‑scale capacity for OpenAI’s cloud‑based AI workloads.
Oracle said negotiations on the equity portion of the project are still underway and that Related Digital, the development partner, has selected an “optimal equity partner” from a pool of proposals that does not include Blue Owl. The company has not yet named the new partner, but it has indicated that the replacement is expected to provide terms comparable to those originally negotiated with Blue Owl.
Blue Owl’s decision was driven by concerns over Oracle’s rising debt load—net debt reached roughly $105 billion in November 2025, up from about $78 billion a year earlier—and the perceived disadvantage of the lease terms for the Michigan site compared to other Oracle deals. The firm also cited the high capital‑spending commitments required for the Stargate program as a factor in its assessment of risk versus return.
The withdrawal creates uncertainty for the Stargate program’s timeline and financing. Oracle’s $30 billion partnership with OpenAI, part of the broader $300 billion commitment over five years, relies on the successful completion of multiple data‑center sites, including the Michigan project. The project’s delay could slow the rollout of Oracle’s AI‑optimized infrastructure and affect its competitive positioning against AWS, Azure, and Google Cloud, all of which are expanding their own AI data‑center footprints.
Oracle’s stock fell about 4 % in morning trading on December 17, reflecting investor concerns about the company’s high debt and aggressive capital expenditures. Analysts noted that the loss of a major equity partner could strain Oracle’s ability to secure financing on favorable terms, and that the company’s ongoing discussions with potential new partners—including tentative talks with Blackstone—are critical to maintaining the Stargate schedule.
Oracle’s management has emphasized that it remains committed to the Stargate initiative and to supporting OpenAI’s cloud‑based AI workloads. The company’s capital‑expenditure guidance for FY 2026 remains at approximately $35 billion, largely earmarked for revenue‑generating equipment, and it has reiterated its focus on cost discipline and strategic investments in high‑return verticals. The outcome of the new partner negotiations will be a key factor in determining whether Oracle can keep the Michigan project on track and preserve its role as a leading AI infrastructure provider.
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