Oracle's largest data center partner, Blue Owl Capital, will not provide funding for a $10 billion deal to build its next facility, a source said Wednesday, amid growing concerns about the cloud computing company's rising debt and artificial intelligence spending.

Blue Owl's discussions with lenders and Oracle regarding investment in a planned 1-gigawatt data center in Saline Township, Michigan, intended to serve OpenAI, have broken down after stalled negotiations, the person said.

A key issue was that Blue Owl viewed the existing leases for the Michigan project as less favorable than those it had helped structure in its other deals with Oracle, the person said.

Oracle shares were down nearly 4% in morning trading. Since its quarterly results report last week, the cloud computing company's shares have fallen more than 15%.

The selloff wiped around $69 billion from Oracle's market value on December 11, as its massive spending and weak forecasts raised doubts over how quickly the big bets on AI will pay off.

Oracle did not immediately respond to a request for comment.

Oracle, OpenAI, and Related Digital announced the Saline Township data center campus in October as part of their "Stargate" push to expand U.S. AI infrastructure capacity.

Last week, Oracle denied a media report that it was delaying OpenAI-related data centers due to labor and material shortages.

Blue Owl Capital has served as Oracle's primary backer for its largest data center projects in the U.S., investing its own money and raising billions of dollars more in debt to build the facilities, according to a Financial Times report, which first reported the development.

Oracle has not signed a deal with a new backer, the report said.

Blackstone Group has held talks to step in as a financial partner but has not yet committed to invest in Oracle's data center, according to the report.