By World Socialist Web Site
Publication Date: 2025-12-20 04:01:00
The fears that the AI investment bubble will burst, which have been increasingly expressed for some time now, are now manifesting themselves both on the stock market and in investment decisions.
AI and technology stocks took a hit on Wall Street this week when private equity group Blue Owl announced it would not close on a $10 billion deal to build a data processing center for technology company Oracle in Saline Township, Michigan.
Blue Owl was Oracle’s main backer, financing a $15 billion site in Abilene, Texas, and an $18 billion project in New Mexico.
The Larry Ellison-owned company is locked in a race to catch up with Google, Amazon and Microsoft to capitalize on AI and has made large investments, largely funded by debt.
Oracle’s debt has increased significantly this year,…
