Oracle Shares Fall Over 5% on Data Center Funding Exit

Oracle Corporation's shares plunged more than 5 percent on Monday, extending a multiday selloff after a key financial partner backed out of a $10 billion data center project in Michigan. The decline, which saw the stock close at around $186, outpaced broader market losses and reflected growing investor concerns over the company's aggressive expansion in artificial intelligence infrastructure.

The setback stemmed from Blue Owl Capital's decision to withdraw from advanced negotiations to fund the construction of a 1-gigawatt facility in Saline Township, Michigan. Blue Owl, which has financed and leased several of Oracle's data centers in recent years, could not reach an agreement on loan terms, according to reports. The project is central to Oracle's efforts to bolster its cloud computing capacity for AI workloads, positioning it against competitors like Amazon Web Services, Google, and Microsoft.

Oracle quickly moved to reassure investors, stating that its development plans remain intact. In a statement, the company confirmed Blue Owl's exit but noted that its developer partner, The Related Companies, has selected an alternative equity investor from a pool of candidates. "Final...