Oracle stock sinks as reported AI data center snag puts rising debt in focus

Core Viewpoint - Oracle's stock fell nearly 5% following reports that Blue Owl Capital will not support a $10 billion deal for a new data center, raising concerns about Oracle's debt financing strategy for AI computing capacity [1][6] Group 1: Financing and Partnerships - Blue Owl Capital, Oracle's largest data center partner, was in discussions for financing a massive facility in Michigan, but negotiations have stalled [1][2] - Oracle stated that final negotiations for financing the project are "on schedule" with a different equity partner, indicating ongoing efforts to secure funding [2] Group 2: Financial Performance and Market Reaction - Oracle's stock has declined nearly 18% for the month, attributed to rising costs and cash outflows that exceeded investor expectations [4] - The company's $248 billion in lease obligations disclosed in its quarterly SEC filing has heightened investor concerns regarding its increasing debt levels [4] - Following earnings results, Oracle executives expressed commitment to maintaining an investment-grade credit rating, currently rated BBB, but investor confidence appears shaky as evidenced by increased demand for credit default swaps [5]