New York, Jan 29, 2026, 17:42 EST — After-hours
- Oracle shares dipped 2.2% on Thursday, at one point sliding as much as 6.5% during the session.
- Blackstone is reportedly considering a larger stake in funding Oracle’s data-center project in Michigan.
- Investors zeroed in on the expenses and potential returns tied to Big Tech’s AI infrastructure push.
Oracle shares fell 2.2%, closing at $169.01 in late after-hours trading Thursday, marking another volatile day for the software giant amid investor concerns over rising costs tied to AI data centers.
This shift is crucial now since Oracle stands as a proxy for the AI buildout trade: large contract wins on the books but steep costs ahead to scale capacity. Investors have been slashing valuations of firms where spending is transparent but profits remain uncertain.
Financing has come back into focus. Blackstone is weighing a bigger stake in Oracle’s Michigan data-center project, possibly by adding a debt investment, sources told Bloomberg News.
Bank of America is spearheading efforts to secure debt financing for the Saline Township, Michigan project, targeting an initial $14 billion, the report said.
Oracle’s shares have swung amid news about its data-center plans. Bloomberg reported that Blue Owl Capital, a financier of data-center projects for Oracle and Meta Platforms, is excluded from the final equity talks on the Michigan site. Oracle maintains the discussions remain “on schedule.” Moneycontrol
Thursday’s decline pushed Oracle over 50% off its September 10 peak, wiping out roughly $463 billion in market value, Bloomberg reported.
“There are assumptions baked in about how much OpenAI will spend,” said Eric Diton, president and managing director of Wealth Alliance. “Oracle’s stock may have surged well beyond its fundamentals.” Moneycontrol
Oracle has pulled in tens of billions of dollars through bond sales lately, both directly and via projects it supports, Bloomberg reported. Following Oracle’s December earnings, a credit risk indicator linked to the cost of insuring its debt surged to its highest since 2009.
The stock dipped to $161.59 in regular trading, down roughly 6.5% from Wednesday’s close, before pulling back some of its losses. Volume surged past 37 million shares.
The wider market offered no support. Microsoft disclosed it had its highest-ever AI investment last quarter but showed slower cloud growth, dragging its shares lower post-report and fueling skepticism over when AI spending will start generating profits.
Meta took a different tack, sharply boosting its 2026 capital spending outlook. Its shares jumped, highlighting how the market’s tolerance for AI spending is growing increasingly uneven.
The risk for Oracle remains clear: rising funding costs or delays in big data-center projects could leave the company holding more debt and front-loaded expenses without the revenue to match.
Next up for investors: any solid news on the Michigan financing deal and other data-center supporters, plus Oracle’s fiscal third-quarter earnings report. The company has indicated it plans to release that update in mid-March.
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