šÆ Oracleās $10B Data Center āOn Holdā ā AI Narrative Meets Credit Reality
Reuters just reported Oracleās $10B Michigan data center is now in limbo after Blue Owl (its biggest data center partner) wonāt back the deal, citing concerns around Oracleās rising debt and AI spending.
Hereās the real takeaway:
ā AI demand is real
ā AI financing isnāt free anymore
Why this matters
ā¢ This isnāt a āchip shortageā problem ā itās a funding problem. When the lender gets cautious, the buildout slows.
ā¢ Tech is overheated without clear ROI. Credit markets donāt buy vibes ā they buy cashflow.
ā¢ Higher rates = longer payback period. The āinfinite AI capexā story breaks the moment financing terms tighten.
What Iām watching next
ā¢ Any changes to Oracle capex / debt trajectory
ā¢ Credit spreads / bond sentiment (thatās where the truth leaks first)
ā¢ Whether Oracle finds a new backer (FT says Blackstone is in discussions)
ā¢ Where JGB is going this week
Bottom line: AI isnāt dead ā but this is a crack in the narrative.
When a $10B project canāt get clean funding, thatās your reminder: the AI boom is now a credit cycle story.
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