Oracle Invokes Force Majeure on $300B AI Compute Project for OpenAI

Oracle has sent a formal force majeure notice to Stack Infrastructure, the developer of the Project Jupiter data center project, seeking to defer payment obligations if the project is not delivered as originally planned by 2028. People familiar with the matter said the move is not intended to exit its position as the anchor tenant, but rather to establish contractual protection in case of construction delays.

Project Jupiter is a large special purpose vehicle (SPV) project that plans to build four data centers on approximately 1,400 acres in New Mexico, providing a total of $300 billion in computing capacity for OpenAI. The financing structure combines bonds, loans, and Blue Owl equity. Stack Infrastructure is a subsidiary of Blue Owl Capital.

Following the news, Oracle shares fell 4% in pre-market trading, Blue Owl Capital dropped 2.3%, and Bloom Energy, the data center power supplier, declined 4.4%. The project had previously faced opposition and regulatory setbacks, with related loans trading at stressed levels. The force majeure notice has heightened market concerns over the project's timeline.

An Oracle spokesperson said Project Jupiter remains on track and that the company remains committed to New Mexico and confident in the project, but declined to comment specifically on the notice. Blue Owl declined to comment. It remains uncertain whether the notice will actually relieve Oracle of its previously committed financial obligations.