Oracle has invoked force majeure on the Jupiter data center project in New Mexico, claiming it is not liable for costs or expenses if the project is delayed. The project is being developed by a subsidiary of Blue Owl, is backed by OpenAI and SoftBank, is slated to come online in 2028, and is the one project committed to fuel cells, which is part of Bloom Energy's AI infrastructure thesis. Jon Quast says the clause lets Oracle avoid payments before the facility generates revenue, given public backlash and possible regulatory delays. Lou Whiteman says the dispute would be useful for investors in clarifying liability, and asks whether Blue Owl could backfill the project if Oracle walks away.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Oracledata centersAI investmentNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.48 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AI Cloud Spending Is Splitting Companies Into the Funded and the Stretched
The article argues AI infrastructure companies are splitting into those funded by long-established cash flows and those borrowing against contracts or the data centers themselves. Oracle reported $664 billion in remaining performance obligations (RPO) and $125.3 billion in total borrowings, with $1.4 billion in interest expense last quarter; its $28.5 billion in capex exceeded $23.1 billion in operating cash flow, leaving free cash flow negative. CoreWeave had a $104 billion backlog and $35.1 billion in total debt, with Microsoft accounting for roughly 67% of its 2025 revenue, while Nebius reported $33.6 billion in RPO backed by investment-grade customers. Applied Digital and Iren rely heavily on non-recourse debt tied to their facilities, with Iren signing a roughly $9.7 billion contract with Microsoft that runs five years. The author notes concentration and financing-cost risks but says the backlogs should not be dismissed, given the real shortage of AI compute capacity.
- TD Cowen Thinks Nvidia Is Helping Oracle Get Its Data Centers Financed
TD Cowen analyst Michael Elias wrote on October 20, 2026 that Nvidia may be giving Oracle credit support, such as lease guarantees or subleases, to help it secure lender funding for AI data centers. Neither company has confirmed this, and the size of any support is unknown. The view is linked to a reported five-year deal in which Tencent would lease about 100,000 advanced AI chips in Oracle data centers in Southeast Asia, estimated at about $7 billion with roughly 30% paid upfront, though that deal is also unconfirmed. The report points to Oracle's cash strain: its capex of $28.5 billion exceeded revenue of $19.3 billion, free cash flow was negative $5.4 billion, and it sold $20 billion of stock during the quarter. S&P cut Oracle to BBB-, its lowest investment-grade rating, in July, and any further downgrade would push its debt into junk territory.
- Tech companies need more data centers. So why are nearly half of all planned projects delayed or canceled?
Global hyperscale spending is projected at about $700 billion, yet many U.S. data center projects are running late: according to the Sandstone Group, nearly half of planned projects are behind schedule, while industry research puts 30% to 50% of the 16 GW of U.S. capacity due online at risk of severe delays or cancellation. Allianz Research cites lengthy permitting, a shortage of roughly 439,000 skilled construction workers, and electrical equipment deficits as key reasons. In markets such as Northern Virginia, Phoenix and Dallas, waits to clear grid interconnection queues routinely run four to seven years. Oracle and OpenAI also scrapped plans to expand the 1,000-acre Crusoe Energy-developed AI campus in Abilene, Texas, from 1.2 GW to 2.0 GW, after negotiations stalled over financing and utility timelines.
- Nvidia prepares to support struggling data centres as AI deals collapse
Nvidia is reportedly in talks to invest hundreds of millions of dollars in Firmus, which cancelled its planned IPO at a valuation of up to A$44bn (£23bn) citing market volatility. The report, from The Information, comes amid a sell-off that has hit AI data-centre “neoclouds” that rely heavily on debt, with CoreWeave shares down more than a quarter in the past month and NextDC falling more than 40% after a project delay. Billionaire Ken Griffin said AI is “almost certainly” in a bubble, while Nvidia, which owns around 7% of Firmus, has been called the “central bank of AI.” The article also says Nvidia is preparing to invest $1bn in Nscale next month, either as equity or convertible debt, after Microsoft pulled out of a deal for Nscale’s Essex data centre.
- 'People are now recognizing Nvidia's compute has a great deal of residual value,' CEO Jensen Huang tells Deirdre Bosa
Nvidia CEO Jensen Huang told Deirdre Bosa that Wall Street is increasingly recognizing the residual value of Nvidia's compute, which could be used to backstop the debt for building data centers. He said the company's systems are widely used, deliver strong performance and are software programmable, so they stay productive for a long time. In August, Nvidia signed memoranda of understanding with six financial institutions, including Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, to assemble a $500 billion funding pool for data center infrastructure. Nvidia points to its 6-year-old Ampere chips still drawing customer demand, and Huang said what used to be a four-year life cycle is now probably eight years or more, which could support loans secured against the chips.
- Nvidia's Jensen Huang wants to build AI factories in weeks, not months
Nvidia CEO Jensen Huang, speaking at Nvidia GTC Berlin, said the new DGX Pod is designed to build AI factories faster and more cheaply, potentially cutting deployment from months to weeks. He said a gigawatt of data center costs about $50 billion, and the 4 to 6 months from shipping components to operation could be shortened by 3 to 4 months if more manufacturing happens in the supply chain, reducing idle cash. Huang argued this would make financing easier because lenders would have more certainty about costs and when revenue starts, which matters amid market volatility over neocloud companies. He said demand is very strong, citing SpaceX, CoreWeave, Nebius and Nscale, and that the large capital tied up before revenue is the key challenge to solve.
Related markets
Latest news
- Meta Earnings Prediction Market Preview: What Will Mark Zuckerberg Say?
Meta Platforms (NASDAQ:META) reports third-quarter earnings after the market closes on Wednesday, as investors look for returns on its heavy AI spending and for comments from CEO Mark Zuckerberg. Analysts expect earnings of $5.89 per share on revenue of $63.36 billion.
- CoreWeave's business model explained: Why investors are worried
The video likens CoreWeave to a landlord that borrowed heavily to buy 51 data centers and leases them to customers such as Microsoft and Meta. The speaker says it earned about $2.6 billion last quarter, roughly $1.5 billion after operating and capital costs, yet paid $640 million in debt repayments in the same period. Those payments are projected to rise by $300 million next year to $900 million, leaving the company about $626 million in the red after accounting for everything. Debt has grown to about $35 billion, with $10 billion due within 15 months against $5.5 billion in cash, while the company plans to spend around $6.4 billion on new data centers over the next three months. An online calculation cited in the video put the chance of default over the next three years at 55%, close to a coin flip.
- Big Tech's eMudhra fixes may leave crypto bots exposed, CertiK warns
CertiK says crypto trading bots and exchange apps may remain exposed to the eMudhra certificate flaw even though Google, Apple and Microsoft have blocked eight vulnerable certificates issued by India's eMudhra. Many applications outside the browser ecosystem do not enforce Certificate Transparency or receive the same revocation protections, so browser fixes may not cover them. Attackers could use compromised certificates to impersonate HTTPS connections to exchanges, wallets and APIs, replacing deposit addresses or tricking users into approving malicious transactions, though this would also require intercepting or redirecting users' traffic. CertiK urges operators to update their software and certificate trust stores and verify that their applications reject the affected certificates.
- Goldman Sachs, JPMorgan and Morgan Stanley are dominating the AI stock boom. Here's their edge
Fueled by the global AI stock boom, looser capital rules and greater lending to hedge funds, major Wall Street banks have already had a banner year in equities trading. The five largest investment banks generated about $67 billion in equities revenue through Sept. 30, $7 billion more than all of 2025. Goldman Sachs, JPMorgan Chase and Morgan Stanley account for a combined $52 billion, nearly 80% of the total, with prime brokerage, which includes margin loans and securities lending to hedge funds, a key growth driver. At Goldman Sachs, equities financing rose 96% in the third quarter to a record $3.37 billion. Asia, especially South Korea and Taiwan, was the fastest-growing frontier for equities.
- From Cultural Appeal to Strategies for Growing Bank Value
VPBank is placing pop culture at the core of its development strategy, as its shares have risen nearly 27% since late July, well ahead of the nearly flat VN-Index. The bank co-organized and was main sponsor of two BIGBANG concerts in Hanoi, which drew more than 50 million access visits to the ticketing platform, and then brought the group's Official Pop-up Store to its Flagship at 89 Láng Hạ, where thousands of fans queued from 3-4 a.m. The article cites KB Kookmin Bank's partnership with Aespa since 2021 and UOB's use of Taylor Swift's The Eras Tour, and notes that 91 of the world's 100 most valuable bank brands sponsor sports, per Brand Finance Banking 500 2025. It says these moves turn customer experiences into a competitive advantage.
- SpaceX Bulls Rejoice: JPMorgan Sees 209% Upside
JPMorgan analyst Doug Anmuth more than doubled his SpaceX (SPCX) price target to $500 from $240 on Oct. 21, implying 209% upside, even though the stock is still well below its June 16 high. Third-quarter revenue rose 161% to $14.6 billion, and SpaceX swung to $4.4 billion of net income from a $1.1 billion loss, with first-quarter 2027 revenue guided to $33 billion–$37 billion. Analysts' 2027 EPS estimate has risen to $2.25 from $0.65 three months ago, yet $500 equals 222x that figure, versus a consensus target of $223 as of Oct. 20. The article calls the target plausible but stretched, holding only if the annual recurring revenue forecast from CEO Elon Musk materializes, with capex of $19.6 billion in the third quarter and $35–40 billion expected in the fourth as key risks.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.