Oracle’s Debt Pressure Starts to Hit Data Center Plans

The Daily Dig:

Investor concern around Oracle has moved beyond its stock price and into its capital intensive data center pipeline. Oracle shares are now down nearly 50% from their September 10th all time high, reflecting growing unease about the company’s debt load and its ability to fund large AI driven infrastructure projects.

According to the Financial Times, asset manager Blue Owl Capital withdrew from a proposed $10 billion Oracle data center project after negotiations broke down over debt terms. The pullback has intensified scrutiny of Oracle’s balance sheet at a time when the company is committing billions to cloud and AI infrastructure.

The situation has also raised questions about the timing of data center capacity intended to support OpenAI, following a Bloomberg report suggesting potential delays. Oracle has denied that its OpenAI related projects are at risk, but the funding uncertainty has not gone unnoticed by markets.

On Wednesday, Oracle shares fell 5.4%, pushing month to date losses past 11%. The selloff spread across the AI ecosystem, weighing on Nvidia, Broadcom, and AMD, and dragging broader markets lower. The Nasdaq Composite fell 1.81%, its worst day in nearly a month, while the S&P 500 dropped 1.16%.

Despite the pullback, Bank of America says the AI trade could extend into 2026, while warning that valuation risks and bubble dynamics continue to build.