The oxygen-related defect in an aluminum nitride (AIN) single crystal and in polycrystalline ceramics is investigated utilizing photoluminescence spectroscopy, thermal conductivity measurements, x-ray diffraction lattice parameter measurements, and transmission electron microscopy. The results of these measurements indicate that at oxygen concentrations near 0.75 at.%, a transition in the oxygen accommodating defect occurs. On both sides of this transition, simple structural models for the oxygen defect are proposed and shown to be in good agreement with the thermal conductivity and lattice parameter measurements, and to be consistent with the formation of various extended defects (e.g., inversion domain boundaries) at higher oxygen concentrations.