Shares in Oracle (ORCL) stock continue to take punches, falling another 5% during Wednesday’s trading session. The software company’s shares fell after its largest data centre partner, Blue Owl Capital, said it will not back a $10B deal for Oracle’s next facility. Blue Owl had previously been in discussions with lenders and Oracle about investing in the planned 1 gigawatt data centre to serve OpenAI in Saline Township, Michigan. However, sources close to the deal tell the Financial Times that the agreement will not go forward after negotiations stalled.

The agreement would’ve been a good one for Oracle to help resolve some of its debts. The company’s latest earnings report revealed it had about $105B in net debt, including lease obligations at the end of November, up from nearly $78B a year ago. Furthermore, Morgan Stanley forecasts this will soar to about $290B by 2028. Oracle sold $18B of bonds in September and is in talks to raise $38B in debt financing through a number of US banks. However, this latest $10B deal falling through creates a more difficult situation for Oracle, one that sent ORCL investors into crisis this week.

In the past five days, ORCL stock has been down over 18%, in part due to its poor earnings report on Tuesday. Oracle (ORCL) reported revenue of $16.06 billion for its fiscal second quarter, up 14% from the previous year but lower than the $16.21 billion projected by analysts tracked by Bloomberg. While the mixed earnings were solid, it was the company’s announced AI spending plan that scared some Wall Street experts.

Indeed, Oracle reported capital expenditures of $12 billion for its fiscal second quarter after the bell on Wednesday, up from about $4 billion the previous year and the roughly $8 billion projected by analysts tracked by Bloomberg. As a result, Oracle’s shares have fallen more than 40 percent from their peak in September, and its bonds have also sold off.

The fears of increased AI spending trickled into other AI stocks on Thursday as well, with Nvidia (NVDA) and AMD seeing slight dips. Analysts eyed the Oracle report as a potential boom-or-bust catalyst for AI stocks to kick off 2026. However, its looking like it will spark the opposite effect as 2025 comes to a close.