"But the massive initiative, called Stargate, may be exhausting the supply of available capital. JPMorgan Chase, the bank that recently led a pack of lenders to extend roughly $38 billion of debt for the construction of two planned Stargate data center campuses in Texas and Wisconsin, has encountered diminished interest as it has sold off pieces of the loan to other financial players, a person familiar with the situation said."
"The person said that the two projects are fully financed, the syndication effort by JPMorgan had been successful overall, and that the slowdown in new participants hadn't alarmed bankers given that it was at the tail end of such a large debt offering. But the person acknowledged that banks and institutional investors had also grown wary in recent months of taking on too much exposure to Oracle, a tech giant whose credit rating sits below some of its peers in the AI race,"
Oracle and OpenAI plan to build $500 billion of data centers by the end of the decade to support AI workloads. JPMorgan Chase led lenders to extend roughly $38 billion of debt for two Stargate campuses in Texas and Wisconsin. Syndication of the loans has slowed as JPMorgan sold portions to other financial players and new participants showed diminished interest. Banks and institutional investors have grown wary of taking on heavy exposure to Oracle given its weaker credit rating relative to peers like Microsoft and Google. The financing pullback raises doubts about the project's ability to meet its ambitious objectives.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]