The tech giant has notified developer Blue Owl Capital of its intent to defer payments on Project Jupiter if the massive New Mexico AI facility misses its planned 2028 opening. Oracle cited force majeure to shield itself from costs stemming from local resistance and regulatory setbacks, including a six month delay to a critical gas pipeline. As part of the move to manage the project, Oracle has removed BorderPlex, a key partner on the site.

The $165B campus is part of the Stargate AI buildout for OpenAI and requires 2.45GW of Bloom Energy fuel cells for power. Credit stress for Oracle has risen as 2056 bonds yielded 8% for the first time ever, and credit default swaps hit record widths, while the project's $18B construction debt is trading below 90 cents on the dollar. Oracle maintains that the facility remains on schedule, though reports indicate the company may still be required to pay investors even if the site lacks electricity.