Becker Business – Episode Summary

Episode: Is Oracle the Canary in the AI Coal Mine?
Host: Scott Becker
Date: December 18, 2025

Episode Overview

In this episode of Becker Business, Scott Becker delves into recent developments surrounding Oracle’s stock performance and broader market implications. The core theme is whether Oracle's current struggles signal potential warning signs for the AI-driven business boom, particularly around large-scale investments in data centers and the financing behind them.

Key Discussion Points and Insights

Oracle’s Stock Drop and the Timing

• [00:26] Scott opens with Oracle's significant stock drop (~5%) on the day and highlights the immediacy and context of this movement.

Massive AI and Data Center Investment

• Oracle is planning to build a $10 billion data center in Michigan.
  • The project is indicative of "massive spending plans related to AI, data centers, and businesses" (Scott Becker, 00:58).
  • Oracle exemplifies the wider corporate rush to scale up infrastructure to meet AI demands.

Oracle's Year in Perspective

• Earlier in 2025, Oracle's stock was up 70%, briefly making Larry Ellison the richest person in the world.
  • This underscores the volatility and momentum in tech and AI stocks this year.
• Mention of Larry Ellison's son, David Ellison, now CEO of Paramount Skydance, attempting to acquire Warner Brothers Discovery—a side note showing the Ellison family's expanding influence.

Financing Concerns: Blue Owl Capital Backs Out

• Blue Owl Capital, a major lender for Oracle’s Michigan data center, has withdrawn funding.
  • "One of their biggest lenders for their data center builds is a company called Blue Owl Capital. And apparently Blue Owl Capital is pulled out of the deal..." (Scott Becker, 01:39).
• This move highlights a key risk: If companies struggle to secure financing for ambitious projects, it could “prick a bit of that sort of needle in the bubble of this AI situation that's going on."
  • This could signal a turning point in market sentiment around AI investments.

Market-Wide Impact

• The NASDAQ also experienced a challenging day, sliding more than 1% following Oracle’s news.
• The S&P 500 was down about two-thirds of a percent.
  • "On this news of Oracle falling about 4 to 5% today is the NASDAQ itself also having a really challenging day." (Scott Becker, 02:12)
• The implication: Oracle's troubles might not be isolated, potentially serving as a broader warning for tech and AI sectors.

Central Question

• Scott raises the key question:
  • "Will Oracle be sort of a canary in the coal mine? Will it be a signal to the rest of the market that we've got trouble?" (Scott Becker, 02:43)
• The episode urges listeners to pay close attention to Oracle and similar companies as potential early indicators of shifting tides in AI and tech investment.

Notable Quotes & Memorable Moments

• [00:58] “Oracle is an example of so many companies that have these massive spending plans related to AI, related to data centers and related to business.”
  — Scott Becker

• [01:47] "Apparently Blue Owl Capital has pulled out of the deal to help finance the data center efforts in Michigan. And this is important because, yes, the companies start to have trouble getting funding for some of these expansions..."
  — Scott Becker

• [02:43] “Will Oracle be sort of a canary in the coal mine? Will it be a signal to the rest of the market that we've got trouble.”
  — Scott Becker

Timestamps for Important Segments

• 00:26 — Introduction to Oracle’s current issues and overview of the episode’s topic.
• 00:58 — Discussion of Oracle’s large AI/data center spending plans.
• 01:39 — Financial wrinkle: Blue Owl Capital withdraws funding.
• 02:12 — Market response: Oracle's troubles ripple through NASDAQ and S&P.
• 02:43 — Host's central question on Oracle as a potential warning sign.

Summary and Takeaway

Scott Becker’s concise discussion frames Oracle’s recent stock dip and funding troubles as potentially symptomatic of larger instabilities in AI-related business investment. While starting with specifics about Oracle, he deftly situates these in the context of overall market jitters and the risk of overextension in the AI boom. The episode ends with an open question about whether Oracle's troubles are isolated—or the first warning to a wider market correction.