Oracle Stock Plunges on Force-Majeure Notice for New Mexico Data Center
Oracle's stock took a hit on Thursday after Bloomberg reported that the company issued a force-majeure notice to the developer of Project Jupiter, its large artificial-intelligence data-center project in New Mexico.
The news led to Oracle shares dropping nearly 7% by mid-morning trading. At around $137.57, they were down about 4.75% from Wednesday's close at $144.56.
According to Bloomberg, the force-majeure notice was sent to a unit of Blue Owl Capital, which is developing Project Jupiter. The notice protects Oracle's contractual position and could allow the company to defer certain payments if the facility doesn't come online in 2028 as planned.
However, an Oracle spokesperson told Bloomberg that 'Project Jupiter remains on our planned schedule' and that the company is 'fully committed to New Mexico and confident in our path forward.'