Oracle Shares Fall 4% on Reported Bid to Defer Payments on AI Project
Oracle has reportedly sent a force majeure notice to the developer of a major New Mexico AI data center, seeking protection against potential cost increases and payment obligations if the project misses its planned 2028 opening.
The notice concerns Project Jupiter, a 1,400-acre campus tied to Oracle’s computing partnership with OpenAI and the broader Stargate infrastructure initiative. Oracle is seeking to defer payments if the project is delayed, rather than withdraw as its main tenant, Bloomberg reported Thursday, citing people familiar with the matter.
Oracle shares fell about 4% in morning trading on Thursday.
The notice was sent to a unit of Blue Owl, which owns data center developer Stack Infrastructure. Blue Owl said that it does not change the financial commitments to the multiyear project. Whether Oracle’s move would relieve it of financial obligations remains uncertain, Bloomberg reported.
“Project Jupiter remains on our planned schedule,” Oracle said. The company added that it is “reimagining” the project’s power plan as part of its commitment to New Mexico.
A force majeure notice is a formal notification that a company is invoking a contract provision covering events beyond its control that prevent or delay performance. Depending on the contract, it may allow obligations to be suspended or deadlines extended.
The campus has faced delays to a planned natural-gas pipeline and legal challenges involving water and air-quality permits. Oracle acknowledged in a Sept. 14 statement that the New Mexico Supreme Court had stayed the air-permit proceeding for the proposed microgrid serving the campus. The company said the order did not affect county permits for construction of the data-center buildings, which occupy a separate, adjacent site.
The company’s own investment announcements also reflect those dependencies. In a Sept. 8 release seeking proposals for 2 gigawatts of renewable energy, Oracle said its commitments and projections for investment, jobs, tax revenue and economic impact assumed approval of the air permit and pipeline.
The financial exposure extends beyond Oracle. The campus secured $18 billion in loans from a consortium of banks, according to earlier reporting by the Financial Times. A potential deferral of tenant payments raises questions for lenders and developers about who would bear the costs of a delayed opening.
Project Jupiter forms part of a much larger expansion. OpenAI said in September 2025 that its agreement with Oracle to develop up to 4.5 gigawatts of additional Stargate capacity represented a partnership exceeding $300 billion over five years. It named Doña Ana County, New Mexico, among the locations. Stargate’s broader US investment commitment totals $500 billion, involving OpenAI, SoftBank and partners including Oracle.
