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Blue Owl Exit Puts Oracle AI Data Center Funding Strategy in Question!

Oracle’s AI ambitions may have been too big, too fast. The company’s sprawling plans to build a national footprint of AI data centers suffered a high-profile blow this week after reports surfaced that Blue Owl Capital walked away from a major funding partnership. While Oracle insists Blue Owl was simply outbid for the Michigan data center project, the market response was immediate: shares slid 4.4% and bond prices declined. This isn’t just about one broken deal. It’s about how Oracle AI data center funding fits into what some are calling the Circular AI Economy—a flywheel of speculative demand, expensive buildouts, and highly concentrated customer bets, especially OpenAI. With $111 billion in debt and a staggering $13 billion in negative free cash flow over the past year, Oracle’s balance sheet is feeling the strain.