Oracle’s AI Data Center Drama: Investors Flee Like It’s 19th Century Railroads

KEY POINTS

•Oracle’s stock plunged after Blue Owl Capital abandoned talks about investing in its Michigan AI data center.
•Blue Owl cited possible delays and unfavorable lease and debt terms when backing out of the deal.
•Industry analysts see this as a sign of a broader market reevaluation of risky AI infrastructure investments.

Oracle’s AI investment plans hit a classic plot twist like a ’19th century railroad boom’ but with less steam and more spreadsheet panic. On December 17, 2025, Oracle’s stock took a nosedive after Blue Owl Capital, the AI boom’s supposed cheerleader, bounced from investing in Oracle’s Michigan data center—part of the OpenAI-linked Stargate project—citing 'lease and debt terms' that screamed 'why bother?' A source spilled to Axios that Blue Owl’s exit lashes a broader 'repricing of risk,' with Oracle and CoreWeave looking like the poor kids maxing their credit cards while Microsoft, Amazon, and Google ride luxury AI yachts. Oracle denied Blue Owl’s involvement but couldn’t stop shares from diving 5.4%, CoreWeave dropping 7.1%, and dragging Nasdaq down 1.8%. Local Michigan officials also threw cold water on fast-tracking approvals, turning Stargate into a slow burn. Venture capitalist Paul Kedrosky hears 'clanging bells' signaling this AI bubble might just be the ultimate tech bubble bubble gone POP.