Oracle Issues Force Majeure Notice on Project Jupiter

The contractual step has coincided with sharp moves in the bond market that signal investors see higher credit risk for Oracle’s AI data‑center financing.

Overview

Oracle sent a force majeure notice to a Blue Owl Capital unit tied to the Project Jupiter data center in New Mexico, a move that gives Oracle the option to delay payments if the campus does not open as planned.
Markets reacted quickly: Oracle shares fell about 3.4% to roughly $139.59 and roughly $18 billion of loans and debt linked to the project are trading below face value.
Credit signals intensified as Oracle’s credit‑default swaps hit record highs and the yield on its 2056 bond rose above 8%, indicating investors demand much higher compensation to hold long‑dated Oracle debt.
Oracle says Project Jupiter remains on schedule and that it is fully committed to New Mexico, and the company still has an investment‑grade rating for now, but a downgrade could push large amounts of its bonds out of investment‑grade indexes.
Project Jupiter is a key part of Oracle’s costly Stargate AI buildout and faces regulatory, local and environmental pushback; upcoming company milestones and financing updates will be watched for their impact on funding costs and AI capacity delivery.