Oracle’s stock took a hit Wednesday over stalled negotiations for the funding of a US data center project, elevating worries on Wall Street and in Washington about the billions pouring into AI infrastructure.
The Financial Times reported that Oracle’s primary backer for its largest data center projects won’t finance a $10 billion, 1-gigawatt facility in Michigan over concerns about the software giant’s rising debt and AI spending. Cloud-computing firms including Oracle, Microsoft, and Meta have amassed a combined $500 billion in obligations toward data center leases, Bloomberg reported.
These future commitments have invited closer scrutiny from investors — amid fears of an AI bubble — as well as from US lawmakers concerned about voter backlash to rapid AI buildout.
