Oracle warns it might not pay data center lease

 

Oracle is acting like your defiant roommate who said he won’t pay rent until the toilet is fixed. The company warned the developer of a massive New Mexico AI data center that it’ll delay contract payments if the project doesn’t come online as planned by 2028, Bloomberg reported yesterday.

The development, dubbed Project Jupiter, faces delays as permits for a natural gas pipeline to fuel the data center are in limbo amid local opposition. Oracle, which is the data center’s main tenant, invoked a force majeure contract clause that protects it from liability if certain events it can’t control occur—though it said it’s still committed to the project.

Oracle sees a murky future

The news adds uncertainty to the gargantuan enterprise, which hinges largely on Oracle paying up:

  • The $18 billion of debt tied to the project is already trading at 90 cents on the dollar amid concerns that Oracle is too debt-burdened, per a recent Financial Times report.
  • Oracle’s stock was down nearly 3.5% yesterday, while shares of its developer, Blue Owl Capital, sagged 3.6%.

This is bigger than Jupiter: The project is part of the Stargate initiative to spend $500 billion building data centers for OpenAI, which President Trump touted alongside the leaders of OpenAI and Oracle last year. Silicon Valley’s overall AI infrastructure splurge is projected to make up 3.6% of US GDP between 2025 and 2032.—SK

Comments

Post a Comment

Popular posts from this blog

GSM: Where Real Fashion Meets Real Rewards

Image
The fashion industry is one of the most influential cultural forces in the world. It defines trends, builds identities, and fuels a global market worth billions of dollars. Yet despite its power, fashion ownership has long remained traditional—buying, wearing, and eventually discarding or reselling items in ways that lack transparency, authenticity, and lasting value. That’s about to change. Welcome to GSM (Get Style Money), the project merging fashion with Web3 to create a world where every style choice carries both cultural and financial power. And with the GSM presale live now, you have the chance to step into the future of fashion before the rest of the world catches on. Real Fashion, Real Rewards. GSM introduces a new way of thinking about fashion: it’s not just something you wear, but something you own and earn from. With blockchain technology at its core, GSM ensures that fashion is no longer disposable—it’s an asset. Here’s how GSM brings this vision to life: 1. Wear-to-Earn Yo...
Read more

Musk says Twitter to launch ‘Verified’ service next week with a ‘gold check’ for companies

Image
  KEY POINTS Elon Musk said in a tweet on Friday that Twitter would launch its delayed “Verified” service next week with different colored checks depending on the type of account. The Twitter CEO said there would be a “gold check” for companies, a grey colored one for government accounts and the existing blue one for individuals, whether they are celebrities or not. All verified accounts will be “manually authenticated” before the check is activated, Musk said. In this article TWTR +0.35 (+0.66%) Follow your favorite stocks CREATE FREE ACCOUNT WATCH NOW VIDEO 01:02 Twitter readies relaunch of ‘Verified’ service Elon Musk  said in a tweet Friday that Twitter would launch its delayed “Verified” service next week with different colored checks depending on the type of account. The Twitter CEO said there would be a “gold check” for companies, a grey colored one for government accounts and the existing blue one for individuals, whether they are celebrities or not. All verified ...
Read more

In bankrupt Lebanon, locals mine bitcoin and buy groceries with tether, as $1 is now worth 15 cents

Image
  KEY POINTS Once known for its stable and investment-friendly banking system, Lebanon has plunged into chaos as hyperinflation grips the country and banks force huge haircuts on dollar withdrawals. To make ends meet in a financial system that no longer makes sense, some Lebanese are mining bitcoin or storing wealth using the cryptocurrency. The dollar-pegged stablecoin tether, which users trade for cash, is also popular. Aerial view of the seafront Manara district near downtown Beirut. Bilwander | Getty Images When Georgio Abou Gebrael first heard about  bitcoin  in 2016, it sounded like a scam. But by 2019, as Lebanon plunged into a financial crisis following decades of expensive wars and bad spending decisions, a decentralized and borderless digital currency operating outside the reach of bankers and politicians sounded a lot like salvation.  Gebrael was an architect living in his hometown of Beit Mery, a village eleven miles due east of Beirut. He had lost his jo...
Read more