Oracle sent force majeure notice to Blue Owl Capital over Project Jupiter delays
Concluded·Day 225·4 sources
Oracle Invokes Force Majeure on New Mexico Stargate Data Center
The gist
Permit denials for a gas pipeline have delayed a flagship AI infrastructure project by at least six months, prompting Oracle to invoke a contractual protection against payment obligations. AI infrastructure financing involves loans, insurance policies, and milestone-triggered payments, and a single element falling out of place can expose financial backers and insurers to losses.
The full picture
Oracle sent a force majeure notice to Blue Owl Capital on September 24, 2026, covering Project Jupiter, its AI data center in New Mexico and a flagship site of the Stargate initiative co-launched by Oracle, OpenAI, SoftBank, and President Donald Trump. The notice allows Oracle to defer lease payments if the facility is not operational by its 2028 target opening but does not allow Oracle to exit the contract as main tenant. State officials have repeatedly denied permits for a gas pipeline required to power the project, delaying it by at least six months. Oracle cited delays and rising costs as justification. Oracle shares fell approximately 5% following the news, and Oracle's capital expenditure reached $28.5 billion last quarter with negative $5.4 billion free cash flow.
How it developed
OpenAI and Oracle abandon Texas Stargate expansion; broader $500 billion initiative described as on track, Oracle announces $50 billion fundraise for datacenter buildout
Sources
Semafor Technology
- Oracle Seeks Lease Delay as Stargate Data Center Faces Permitting Gridlock
startupfortune.com
The daily email
Want this in your inbox?
I send one email each morning with the stories that moved. If you would rather just read here, that works too.
Subscribe free