Oracle shares plummet 5.40% as Blue Owl exits Michigan data center funding talks.

Oracle shares plummeted 5.4% in pre-market trading on Wednesday, signaling investor unease over recent developments in its $10 billion Michigan data center project. The decline followed reports that Blue Owl Capital—the tech giant’s largest data center partner—has withdrawn from funding discussions, raising questions about the project’s financial viability and Oracle’s broader AI infrastructure strategy.

Oracle confirmed that negotiations for an equity deal remain “on schedule” but declined to name the new partner. A spokesperson emphasized construction will begin in Q1 2026, though the firm has not yet secured a replacement backer. Sources cited in financial media noted that Blue Owl exited talks due to unfavorable lease terms and concerns over Oracle’s rising debt, which has surged to $105 billion. The project, part of Oracle’s Stargate AI initiative with OpenAI, now faces scrutiny as investors weigh the risks of its aggressive capital expenditures and OpenAI’s own unprofitable trajectory.

Market participants highlighted broader skepticism toward AI-driven infrastructure spending, with Oracle’s shares down over 40% since mid-September. While the company cited strong cloud order growth, earnings reports and debt forecasts have fueled doubts about long-term returns. Blackstone Group has engaged in preliminary talks as a potential partner, but no commitments have been finalized. The fallout extended beyond Oracle, with AI-linked stocks like Nvidia and AMD also under pressure, underscoring a sector-wide reassessment of growth-at-all-costs strategies.