Two companies at the center of the investment boom in artificial intelligence (AI) data centers are following different paths, according to a report from Financial Times. Oracle and alternative investment manager Blue Owl Capital had partnered in joint ventures to build AI data centers, but negotiations to finance a new one-gigawatt facility in Michigan (USA) fell through.
“The report from the FT is incorrect,” Oracle spokesman Michael Egbert said in an emailed statement. “Our development partner, Related Digital, selected the best equity partner from a competitive pool of options, which in this case was not Blue Owl. Final negotiations for the equity agreement are progressing on schedule and as planned.”
The episode represents yet another chapter in Oracle’s attempt to rapidly expand its AI-focused cloud to fulfill a $300 billion contract with startup OpenAI, a company that has neither $300 billion nor a clear path to getting it.
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Oracle issued $18 billion in new debt in September, bringing its total to $111 billion in November, up from $89 billion a year earlier. The company also had $272 billion in leasing obligations, an increase of $152 billion in just three months.
In addition, the company recorded a loss of US$13 billion in free cash flow over the last 12 months, US$10 billion in the last quarter alone. The reconfiguration of Oracle’s balance sheet and cash flows weighed on shares, which are down more than 40% from the all-time high reached in September, while the prices of its debt securities have also fallen. Source: Dow Jones Newswires.
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*Content translated with the help of Artificial Intelligence, reviewed and edited by the Editorial Team BroadcastGrupo Estado’s real-time news system.
