WS #14714
Oracle has sent a force majeure notice to Blue Owl regarding its $18 billion Project Jupiter data center in New Mexico, seeking to delay payments if the 2028 start date slips. While Blue Owl maintains commitments, the credit default swap (CDS) spread on the deal has widened 40% in three months, indicating market concern over the viability of large-scale AI infrastructure financing. This development dampens the bullish thesis on pure-play AI hardware demand and highlights execution risks in the sector.
Oracle Project Jupiter Credit Stress
Oracle has sent a force majeure notice to Blue Owl regarding its $18 billion Project Jupiter data center in New Mexico, seeking to delay payments if the 2028 start date slips. While Blue Owl maintains commitments, the credit default swap (CDS) spread on the deal has widened 40% in three months, indicating market concern over the viability of large-scale AI infrastructure financing. This development dampens the bullish thesis on pure-play AI hardware demand and highlights execution risks in the sector.