Oracle's Project Jupiter Hit with Force Majeure Notice
Oracle's shares took a hit on Thursday after reports emerged that the tech giant had sent a 'force majeure' notice to its New Mexico data center project developer, Blue Owl Capital.
The move is seen as an attempt by Oracle to shield itself from potential losses due to higher expenses associated with the stalled Project Jupiter, which aims to become part of the Stargate artificial intelligence infrastructure buildout led by President Donald Trump.
According to Bloomberg, sources familiar with the matter revealed that Oracle sent the notice to Blue Owl Capital's unit in relation to its New Mexico data center project, citing expected delays and increased costs.
The 'force majeure' clause allows companies to renegotiate or cancel contracts due to unforeseen circumstances. The move comes as the project faces opposition from local residents ahead of the midterm elections.