Oracle Shares Plunge 5% as Key Partner Exits $10 Billion Michigan Project

• Oracle shares dropped 5% after Blue Owl Capital withdrew from the $10 billion Michigan data center project.
• Blue Owl cited "unsustainable terms" for its decision to not contribute equity to the Michigan project.
• The withdrawal triggered a broader sell-off in AI-linked stocks like Nvidia, Broadcom, CoreWeave, and AMD.
• Oracle confirmed the Michigan project is moving forward, with Blackstone and Bank of America in talks for equity.
• Oracle's off-balance sheet financing model for data centers is swelling its lease obligations and raising debt protection costs.

Why It Matters: Oracle's stock fell due to a partner's exit from a major data center project, impacting AI peers.