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Oracle shares fall as AI project raises investor questions
Oracle is helping build a very large computer centre in New Mexico for artificial intelligence work.
The centre is called Project Jupiter.
Reports say Oracle told the developer it may need extra time before making some payments if construction is delayed.
This type of contract protection is called force majeure.
It does not necessarily mean Oracle is cancelling the project.
The centre is supposed to begin operating in 2028.
The project has faced questions about construction, permits, power and financing.
Investors are watching to see whether the project stays on schedule and whether its costs are worthwhile.
Oracle shares fell nearly 5% in pre-market trading after a report that it invoked force majeure on Project Jupiter in New Mexico.
The notice reportedly seeks to delay payment obligations if construction delays prevent the data centre from opening as planned in 2028.
Project Jupiter is a major data centre campus linked to Oracle’s artificial intelligence expansion and partnership with OpenAI.
The project has faced regulatory and local opposition involving proposed power infrastructure.
Oracle has reportedly said the project remains on schedule and that it remains committed to New Mexico; there is no confirmation it is abandoning the facility.
- Who
- Oracle, the project’s developer, a unit of Blue Owl Capital, and investors are involved.
- What
- Oracle reportedly invoked force majeure for Project Jupiter, potentially delaying payment obligations if the project is delayed.
- Where
- Project Jupiter is in Doña Ana County, New Mexico.
- When
- The report emerged on a Thursday; the facility is planned to come online in 2028.
- Why
- Oracle reportedly wants protection from financial exposure caused by construction delays and additional costs.
Investor concerns
Oracle’s position
Project costs and delays
Investor concerns
Investors are concerned that construction, regulatory and financing challenges could increase costs or delay the facility’s launch.
Oracle’s position
Oracle’s reported notice is intended to provide flexibility over payments if delays occur, rather than indicate that the company is leaving the project.
Project timeline
Investor concerns
The force majeure report raises questions about whether the planned 2028 opening can be achieved.
Oracle’s position
Oracle has reportedly said Project Jupiter remains on schedule.
Regulatory issues
Investor concerns
Local and regulatory opposition, including disputes over proposed power infrastructure, creates uncertainty around the project.
Oracle’s position
Oracle has said the data centre campus and proposed microgrid are separate facilities, and that construction of the data centre buildings does not require the air-quality permit involved in a separate legal proceeding.
Key facts
- Share movement
- Oracle shares fell nearly 5% in pre-market trading.
- Project
- Project Jupiter, a major artificial intelligence data centre campus.
- Location
- Doña Ana County, New Mexico.
- Planned launch
- The facility is expected to come online in 2028.
- Developer
- A unit of Blue Owl Capital.
- Reported action
- Oracle sent a force majeure notice concerning potential payment obligations.
- Project status
- Oracle has reportedly said the project remains on schedule and that it remains committed to New Mexico.
Sources
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