Oracle Data Center issued bonds worth $1.4 billion in the Chinese bond market. Investors demanded a higher premium.

Investors are requesting a higher-than-usual premium to support the issuance of $14 billion in bonds for a data center project backed by Oracle, as market concerns grow over a large amount of debt related to artificial intelligence that is set to enter the market. According to sources familiar with the matter, the issuance has been privately pitched to a small group of institutions in recent weeks, with the aim of funding a 1 gigawatt data center in Saline, Michigan, as part of a $300 billion agreement with OpenAI to provide 4.5 gigawatts of computing power for the ChatGPT manufacturer. However, some investors are questioning whether Oracle - whose aggressive AI spending plans have been a source of market concern in recent months - can provide enough assurance to ensure repayment of the debt in case of project delays or Oracle's withdrawal from supporting the project bonds. The tech giant is only a tenant of the facility, not a co-owner.