Oracle Shares Drop 5.4% as Blue Owl Exits Michigan AI Data Center Deal
Oracle's stock tumbled sharply after Blue Owl Capital withdrew financing for a politically contentious AI data center project in Michigan. The abrupt exit rattled investors, exposing vulnerabilities in Oracle's infrastructure expansion strategy.
Michigan's legislative debate over data center tax incentives has introduced unforeseen policy risks. While Blackstone and Bank of America may provide alternative funding, the incident highlights growing scrutiny of hyperscale computing investments.
The selloff reflects broader market apprehension about political interference in tech infrastructure. Oracle's leaseback model—where third parties fund construction—now faces its first significant stress test amid shifting regulatory winds.