Why Oracle Stock Crashed On Wednesday

Oracle ORCL shares fell about 5% on Wednesday after reports surfaced that Blue Owl Capital would not fund a $10 billion data center project linked to OpenAI.

The cloud giant said the project in Saline Township, Michigan, remains "on schedule," but confirmed that Blue Owl is no longer involved in financing talks.

The planned facility, designed to provide 1-gigawatt capacity for AI operations, is part of Oracle's long-term expansion in cloud infrastructure. Investors have raised questions about the company's ability to fund large-scale projects, given its $248 billion in lease and cloud capacity commitments over the next 15 to 19 years.

Despite the dip, analysts note that Oracle's efforts to secure computing resources for AI remain a strategic priority.

The stock has been volatile this month amid broader tech sector pressures and rising investor scrutiny of off-balance-sheet obligations.

Market watchers are also tracking AI-driven infrastructure spending and upcoming earnings from chip suppliers like Nvidia NVDA for signs of enterprise demand.