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● TRACKER Updated 19d ago · 31 sources tracked

Oracle stock sank after it invoked force majeure on its troubled New Mexico AI data center

Oracle shares fell 8.8 percent on Wednesday after the company declared force majeure on Project Jupiter, a massive AI data center in New Mexico. The stock hit a low of $129.23 and closed at $130.60, with trading volume rising 71 percent above average. Co-founder Larry Ellison lost more than $6 billion in a single day. Despite the volatility, Mizuho maintains an Outperform rating and a $320 price target, while Oracle continues heavy AI spending supported by a $664 billion cloud backlog.

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  • ✓ Oracle declared force majeure on its New Mexico data center project, known as Project Jupiter.
  • ✓ Oracle shares fell 8.8 percent on Wednesday, trading as low as $129.23 and closing at $130.60.
  • ✓ Trading volume for Oracle stock increased 71 percent above its average session volume.
  • ✓ The New Mexico data center project is two years into a four-year plan.
🛡️ Source Corroboration: 31 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

New reports identify the New Mexico site as Project Jupiter and detail a $6 billion loss in Larry Ellison's personal fortune.

Live updates

  1. Oracle stock drops as company invokes force majeure on New Mexico AI project

    Oracle shares fell 8.8 percent on Wednesday after the company declared force majeure on Project Jupiter, a massive AI data center in New Mexico. The stock hit a low of $129.23 and closed at $130.60, with trading volume rising 71 percent above average. Co-founder Larry Ellison lost more than $6 billion in a single day. Despite the volatility, Mizuho maintains an Outperform rating and a $320 price target, while Oracle continues heavy AI spending supported by a $664 billion cloud backlog.

    Why it matters

    The New Mexico facility is part of a four-year construction plan. Oracle invoked force majeure two years into that timeline to prepare for potential infrastructure delays. This move pressures the company's AI bull case amid rising funding costs.

    What is confirmed

    • Oracle declared force majeure on its New Mexico data center project, known as Project Jupiter.
    • Oracle shares fell 8.8 percent on Wednesday, trading as low as $129.23 and closing at $130.60.
    • Trading volume for Oracle stock increased 71 percent above its average session volume.
    • The New Mexico data center project is two years into a four-year plan.

    Still unconfirmed

    • Oracle has a $664 billion cloud backlog.

    What to watch next

    • Official explanation from Oracle regarding the specific infrastructure delays causing the force majeure
    • Updates on the project timeline for Project Jupiter
    • Changes in Wall Street analyst ratings following the stock volatility
    Sources used for this update (5)
    1. www.cnn.com — Breaking News, Latest News and Videos | CNN
    2. dyax.io — Oracle Declares Force Majeure on New Mexico Data Center ...
    3. www.fool.com — Oracle Calls Force Majeure Already? | The Motley Fool
    4. timesofindia.indiatimes.com — Larry Ellison loses $6 billion in a day, as AI worries wipe ...
    5. www.foreignpolicyjournal.com — Oracle (NYSE: ORCL) Bull Case Faces Pressure As AI Data ...
    confidence 90%

  2. Oracle Stock Sinks After Force Majeure Notice in New Mexico

    Oracle shares fell 8.8 percent during trading on Wednesday following the company's decision to invoke force majeure on a massive New Mexico data center project. The stock traded as low as $129.23 and last traded at $130.60, with trading volume jumping 71 percent above its average session volume. Despite the setback, Wall Street analysts maintain a buy call on the company, and Mizuho reaffirmed an Outperform rating with a $320 price target, signaling that long-term growth opportunities remain intact for investors.

    Why it matters

    The corporation faces mounting questions over the leveraged buildout of massive artificial intelligence infrastructure. The $13 billion New Mexico bet hinges on pipeline approvals and a power deal that is not yet signed. Severe weather, site flooding, and pipeline delays threaten the timeline of the campus.

    What is confirmed

    • Oracle shares fell 8.8 percent during trading on Wednesday, dropping from a previous close of $143.20 to trade as low as $129.23.
    • Trading volume reached 50,478,215 shares, representing a 71 percent increase from the average session volume of 29,451,123 shares.
    • Mizuho reaffirmed an Outperform rating and a $320 price target for Oracle stock.
    • Oracle sent a force majeure notice to developer Blue Owl to protect itself from potential cost increases on its New Mexico data center project.

    Still unconfirmed

    • Wall Street analysts have reiterated a buy call on Oracle despite the infrastructure and regulatory challenges.

    What to watch next

    • Decisions by regulators on speeding up the Green Chile Pipeline
    • The finalization and signing of the pending power deal for the New Mexico data center
    • Further stock price movements and trading volume changes for NYSE:ORCL
    Sources used for this update (5)
    1. article.wn.com — Oracle cites ‘force majeure’ to shield itself on data center ...
    2. finance.yahoo.com — Why Did Oracle Stock Drop Today? - Yahoo Finance
    3. www.newscase.com — Oracle’s $13 Billion New Mexico Bet Hinges on a Pipeline ...
    4. economictimes.indiatimes.com — HAS DOW DECLARED FORCE MAJEURE - The Economic Times
    5. www.marketbeat.com — Oracle (NYSE:ORCL) Stock Falls 8.8% - Here's What Happened
    confidence 95%

  3. Oracle cites force majeure on New Mexico AI data center

    Oracle invoked force majeure on its troubled Project Jupiter AI data center in New Mexico, shielding the company from liability and allowing payment or rent delays amid construction setbacks. This move has raised concerns among market analysts and credit investors about the leveraged buildout of massive AI infrastructure projects. The project's 2.45-gigawatt capacity and $664 billion AI backlog are under threat from severe weather, site flooding, and a delayed pipeline.

    Why it matters

    The force majeure notice has significant implications for Oracle's AI ambitions and the broader data center industry, which is grappling with the challenges of securing reliable power and navigating complex construction projects. The New Mexico site is a prime example of the hurdles that companies face in building large-scale AI infrastructure.

    What is confirmed

    • Oracle Corp. has sent a force majeure notice to the developer of Project Jupiter, a 2.45-gigawatt AI campus in New Mexico.
    • The force majeure notice allows Oracle to delay payments or rent following construction setbacks.
    • Market analysts pointed to the New Mexico site as a prime example that simply securing power is no longer enough for massive artificial intelligence infrastructure projects.

    Still unconfirmed

    • Oracle is now trucking natural gas to its AI data centers.

    What to watch next

    • Oracle's future updates on Project Jupiter's construction progress
    • Decisions on the project's 2.45-gigawatt capacity and $664 billion AI backlog
    • Impact of severe weather and site flooding on the project's timeline
    Sources used for this update (4)
    1. en.wikipedia.org — Oracle - Wikipedia
    2. www.zerohedge.com — From Force Majeure To Forced Haulage: Oracle Is Now Trucking Natural Gas To Its AI Data Centers | ZeroHed....
    3. finance.yahoo.com — Oracle’s ‘force majeure’ warning lands as AI power gets scarce
    4. www.foreignpolicyjournal.com — Oracle (NYSE: ORCL) Issues Force Majeure Warning As Pipeline Delay Threatens $664 Billion AI Backlog
    confidence 85%

  4. Oracle Stock Sinks After Invoking Force Majeure on New Mexico AI Hub

    Oracle shares fell after the company declared a force majeure on Project Jupiter, its massive artificial intelligence data center campus in New Mexico. The legal maneuver protects Oracle from liability and allows payment or rent delays following construction setbacks. Market analysts at IO Fund pointed to the New Mexico site as a prime example that simply securing power is no longer enough for massive artificial intelligence infrastructure projects. Credit investors face growing anxiety regarding the leveraged buildout as severe weather and site flooding continue to threaten progress.

    Why it matters

    The sudden legal notice highlights the immense physical and financial strains facing large-scale artificial intelligence infrastructure developments. Power acquisition alone no longer guarantees smooth deployment, as environmental hazards and construction hurdles threaten aggressive timelines. Oracle previously secured a seven billion dollar artificial intelligence cloud deal with Tencent to bring prepaid liquidity and partnered with Bloom Energy for a major fuel-cell deployment at the campus.

    What is confirmed

    • Oracle Corporation issued a force majeure notice on Project Jupiter, its artificial intelligence data center campus in New Mexico.

    Still unconfirmed

    • Artificial intelligence infrastructure credit investors may find themselves spooked by the force majeure clause invocation.

    What to watch next

    • Updates on the construction timeline for Project Jupiter
    • Statements from Bloom Energy regarding fuel-cell deployments at the New Mexico site
    Sources used for this update (3)
    1. finance.yahoo.com — AI Data Center Delays Raise New Questions For ORCL, BE And ...
    2. www.insidermonkey.com — Oracle’s Force Majeure Notice on Project Jupiter: Why Bloom ...
    3. www.9fin.com — Hot Stacks — The force majeure clause haunting data center ...
    confidence 100%

  5. Oracle Invokes Force Majeure on New Mexico AI Data Center

    Oracle Corporation has issued a force majeure notice for Project Jupiter, its massive artificial intelligence data center campus in New Mexico. The legal move shields the company from liability and allows payment or rent delays amid construction setbacks. The development coincides with a massive capital commitment involving Bloom Energy Corporation, which plans its largest single fuel-cell deployment for the site. While Oracle secured a seven billion dollar artificial intelligence cloud deal with Tencent to bring prepaid liquidity, severe weather and site flooding continue to threaten the leveraged infrastructure buildout.

    Why it matters

    The unfolding crisis at Project Jupiter highlights the fragile nature of the current artificial intelligence infrastructure boom, which relies heavily on billions of dollars in debt and forward commitments. Oracle faces immense financial exposure through an expected lifespan investment reaching up to one hundred sixty-five billion dollars and significant liabilities. The site's stability is further tested by environmental pressures that threaten construction timelines for the multi-gigawatt power deployments.

    What is confirmed

    • Oracle Corporation issued a force majeure notice on Project Jupiter, its New Mexico AI data center campus.
    • Project Jupiter involves up to $165 billion of investment over its life.
    • The project includes Bloom Energy Corporation's largest single fuel-cell deployment, covering up to 2.45 gigawatts.
    • Oracle landed a five-year, roughly $7 billion Tencent AI cloud and compute contract.

    Still unconfirmed

    • Outside reports point to power permit delays, funding snags, and construction loans trading at a discount.
    • Project Jupiter faces $125 billion in liabilities testing its leveraged buildout.

    What to watch next

    • Updates on whether Oracle's force majeure notice leads to canceled vendor contracts or delayed equipment deliveries.
    • Further financial disclosures regarding the trading status of construction loans linked to Project Jupiter.
    Sources used for this update (5)
    1. capacityglobal.com — $165bn Project Jupiter: What Oracle's force majeure notice ...
    2. finance.yahoo.com — Oracle’s Force Majeure Notice on Project Jupiter: Why Bloom ...
    3. frankrayal.com — Oracle, Force Majeure, and the Hidden Risks Behind the AI ...
    4. www.ad-hoc-news.de — Oracle's $7 Billion Tencent Win Can't Paper Over the Cracks ...
    5. www.ad-hoc-news.de — Oracle's $7 Billion Tencent Contract Lands as Floodwaters ...
    confidence 90%

  6. Oracle Stock Drops After Force Majeure Invocation in New Mexico

    Oracle shares fell five percent following the company's decision to invoke force majeure on its eighteen billion dollar Project Jupiter artificial intelligence data center in New Mexico. The legal maneuver protects the firm from liability and permits payment or rent delays if construction milestones are missed. While Oracle maintains the facility remains on schedule with no critical damage despite recent flooding and severe weather, outside reports point to power permit delays, funding snags, and construction loans trading at a discount.

    Why it matters

    Project Jupiter represents a massive infrastructure bet for Oracle as artificial intelligence computing demands surge. Severe weather and flooding in New Mexico have raised questions about execution risks for multi-billion dollar tech facilities. The invocation of force majeure highlights potential friction between developers, lenders, and municipal utility permits.

    What is confirmed

    • Oracle stock fell 5% on flood concerns at its $18B Project Jupiter AI data center in New Mexico.
    • The company reports no critical infrastructure damage.

    Still unconfirmed

    • Outside reports point to power permit delays, funding snags, and construction loans trading at a discount.

    What to watch next

    • Official updates on construction timelines for Project Jupiter
    • Resolution of local power permits and utility approvals in New Mexico
    • Performance of Oracle construction loans and subsequent financial disclosures
    Sources used for this update (2)
    1. blockonomi.com — Oracle (ORCL) Stock Dips 5% Amid New Mexico Flooding Concerns ...
    2. finance.yahoo.com — Oracle Gives Major Update After Flooding Reaches Project Jupiter
    confidence 100%

  7. Oracle Stock Sinks After Invoking Force Majeure on New Mexico AI Hub

    Oracle shares fell five percent following the company's decision to invoke force majeure on its eighteen billion dollar Project Jupiter artificial intelligence data center in New Mexico. The legal maneuver protects the firm from liability and permits payment or rent delays if construction milestones are missed. While Oracle maintains the facility remains on schedule with no critical damage despite recent flooding and severe weather, outside reports point to power permit delays, funding snags, and construction loans trading at a discount.

    Why it matters

    The eighteen billion dollar infrastructure effort highlights broader risks within the speculative artificial intelligence sector as massive data centers face energy and logistical bottlenecks. Oracle's legal notice tests relationships with energy partners and raises investor scrutiny regarding the company's debt load amid local pushback. Analysts remain bullish despite the setbacks, while construction loans for the New Mexico campus trade below par.

    What is confirmed

    • Oracle shares dropped five percent following the force majeure notice.
    • Project Jupiter is an eighteen billion dollar artificial intelligence data center located in New Mexico.
    • Oracle confirmed there was no critical damage from severe weather and flooding, maintaining the project remains on schedule for a two thousand twenty eight launch.

    Still unconfirmed

    • The force majeure notice was triggered by stalled power permits and a funding snag rather than weather damage alone.
    • The legal move could allow Oracle to walk away from obligations costing billions or exit the project entirely.
    • Construction loans for the facility are trading near eighty-nine to ninety-one cents.
    • The notice is specifically about deferring rent rather than exiting the project.

    What to watch next

    • Resolution of the power permits and natural gas pipeline delays tied to the New Mexico campus.
    • Future trading prices of the eighteen billion dollar construction loans.
    • Official updates regarding the scheduled two thousand twenty eight launch timeline.
    Sources used for this update (4)
    1. www.sbcmedia.blog — Oracle’s Force Majeure Exposes Cracks in the AI Data‑Center Boom
    2. www.marketbeat.com — ORCL Stock: Force Majeure Notice Tests BE, ET Amid AI Build-Out
    3. www.realtytoday.com — Oracle's Force Majeure Notice on Project Jupiter Puts Rent ...
    4. moneycheck.com — Oracle (ORCL) Shares Slide Amid New Mexico Flooding Concerns ...
    confidence 80%

  8. Oracle Stock Falls As Flooding And Force Majeure Hit AI Project

    Oracle shares dropped five percent after the company invoked force majeure on its Project Jupiter artificial intelligence data center in New Mexico. The legal step protects Oracle from liability and could permit payment delays if construction setbacks push the facility past its scheduled two thousand twenty eight launch. While severe weather and flooding struck the site, the company stated there was no critical damage and maintained that the eighteen billion dollar project remains on schedule. The infrastructure effort has previously faced local pushback and rising investor questions regarding the company debt load.

    Why it matters

    The eight-billion-dollar Project Jupiter is a massive artificial intelligence data center development in New Mexico intended to underpin significant technical capacity. Investors monitor the initiative closely because of the heavy financial obligations and debt load tied to large scale infrastructure. Regulatory hurdles and permitting delays continue to complicate construction timelines across the sector.

    What is confirmed

    • Oracle shares fell five percent following the force majeure notice on the New Mexico data center.
    • The company confirmed that the eighteen billion dollar Project Jupiter site suffered no critical damage from flooding and stays on schedule.
    • Permitting delays and weather issues prompted the legal move affecting the large scale Project Jupiter site.
    • The force majeure notice could allow payment delays if construction setbacks push the facility beyond its planned twenty twenty eight launch.

    Still unconfirmed

    • Oracle issued a force majeure notice regarding its Stargate project, which halved an OpenAI investment.

    What to watch next

    • Confirmation of whether construction timelines for the two thousand twenty eight launch date are formally extended.
    • Updates on the extent of repairs needed following the New Mexico flooding.
    • Further disclosures regarding the financial strain and debt obligations linked to Oracle data center projects.
    Sources used for this update (5)
    1. coincentral.com — Oracle (ORCL) Stock Drops as Flood Fears Hit Its $18B AI ...
    2. parameter.io — Oracle (ORCL) Stock Tumbles After New Mexico Flooding ...
    3. finance.yahoo.com — Oracle (ORCL) Invokes Force Majeure On Project Jupiter While ...
    4. www.wionews.com — Oracle shares fall 5% as costly AI infrastructure project ...
    5. www.ajupress.com — Oracle's Force Majeure Notice Halves OpenAI Investment Amid ...
    confidence 90%

  9. Oracle Shares Sink After Invoking Force Majeure on New Mexico Facility

    Oracle shares fell following reports that the company invoked force majeure on its controversial artificial intelligence data center project in New Mexico. The legal maneuver shields Oracle from potential liability tied to the infrastructure effort, which has faced local pushback. Financial observers and investors monitor the situation as questions mount regarding financial strain surrounding the company's extensive data center debt load.

    Why it matters

    Oracle Corporation is an American multinational technology company headquartered in Austin, Texas, co-founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates. The company ranks among the largest corporations globally by market cap, selling database software, cloud infrastructure, enterprise applications, and hardware.

    What is confirmed

    • Oracle Corporation is headquartered in Austin, Texas.
    • The company was co-founded in 1977 by Bob Miner, Ed Oates, and Larry Ellison.
    • Oracle sells database software, enterprise applications, cloud infrastructure, and hardware.

    Still unconfirmed

    • Oracle invoked force majeure on its artificial intelligence data center project in New Mexico to shield the company from liability amid local pushback and debt concerns.

    What to watch next

    • Further official disclosures regarding the New Mexico data center project status
    • Updates on Oracle data center debt loads and financial strain
    Sources used for this update (3)
    1. en.wikipedia.org — Oracle Corporation - Wikipedia
    2. finance.yahoo.com — Paradium.AI, Inc. (PAAI)
    3. docs.oracle.com — Oracle Help Center
    confidence 80%

  10. Oracle Stock Sinks After Invoking Force Majeure on New Mexico Data Center

    Oracle shares fell following reports that the company invoked force majeure on its controversial artificial intelligence data center project in New Mexico. The legal maneuver serves to shield Oracle from potential liability tied to the massive infrastructure effort, which has faced significant local pushback. Financial observers and investors are closely monitoring the situation as questions mount regarding the financial strain surrounding Oracle's extensive data center debt load.

    Why it matters

    The company faces an $18 billion data center debt burden that is currently under strain. This financial pressure coincides with local opposition to the New Mexico project, raising broader industry concerns about the massive capital expenditures required for artificial intelligence infrastructure.

    What is confirmed

    • Oracle invoked force majeure on its New Mexico data center project.
    • Oracle shares dropped following reports of the force majeure notice.
    • The data center project faces local pushback.
    • Oracle carries $18 billion in data centre debt under strain.

    What to watch next

    • Official statements from Oracle detailing the specific reasons for invoking force majeure
    • Updates on the construction status and local disputes surrounding the New Mexico data center
    • Further financial disclosures regarding Oracle's $18 billion data centre debt
    Sources used for this update (5)
    1. Financial Times — Oracle’s $18bn data centre debt under strain amid local pushback
    2. Bloomberg — Oracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center
    3. CNBC — Oracle shares drop on report it sent 'force majeure' notice about data center project
    4. qz.com — Oracle stock sank after it invoked force majeure on its troubled New Mexico AI data center
    5. Gizmodo — AI Bubble Watch: Oracle Seeks Financial Shield From Massive Data Center Project
    confidence 95%
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