Oracle shares fell nearly 5% in pre-market trading on Thursday after reports that the company had invoked force majeure on a massive AI data centre project in New Mexico. The move is reportedly aimed at protecting Oracle from financial exposure if construction delays push the facility beyond its planned launch in 2028.&nbsp;&nbsp;The development puts a spotlight on the growing costs and risks behind the artificial intelligence boom. Oracle is not reportedly walking away from the project. Instead, it is seeking flexibility over payments as its infrastructure ambitions face construction, regulatory and financing challenges.<h2>Why has Oracle invoked force majeure?</h2>According to a Bloomberg report cited by Reuters, Oracle sent a force majeure notice to the project's developer, a unit of Blue Owl Capital. The notice is reportedly intended to delay payment obligations if the data centre, known as Project Jupiter, is delayed and fails to come online as planned.&nbsp;MarketScreener&nbsp;Force majeure is a contractual provision that can offer relief from certain obligations when extraordinary circumstances beyond a party's control disrupt a project. Whether it applies depends on the contract and the circumstances.&nbsp;Oracle is reportedly seeking to protect itself against delays and additional costs, rather than give up its role as the facility's main tenant. Reuters said it could not independently verify Bloomberg's report. Oracle and Blue Owl did not immediately respond to Reuters' requests for comment.&nbsp;<h2>What is Project Jupiter and why does it matter?</h2>Project Jupiter is a major data centre campus in Doña Ana County, New Mexico, linked to Oracle's wider AI infrastructure expansion and its partnership with OpenAI. The facility is designed to support enormous computing workloads needed to train and run AI models. Such projects require substantial investment in buildings, power supply, cooling systems and specialised computing equipment.&nbsp;The New Mexico project has faced regulatory and local opposition, including disputes involving the proposed power infrastructure. Oracle said in a September 14 statement that the data centre campus and a proposed microgrid are separate facilities, and that construction of the data centre buildings does not require the air-quality permit at the centre of a separate legal proceeding.&nbsp;Oracle.<h2>Is Oracle abandoning its AI data centre plans?</h2>There is no confirmation that Oracle is exiting Project Jupiter. In fact, the reported notice appears aimed at protecting the company if the timeline slips, rather than cancelling its role.&nbsp;Oracle has said the project remains on schedule and that it is committed to New Mexico, according to a Bloomberg report cited by Yahoo Finance.&nbsp;Yahoo Finance The distinction matters. A payment delay would not necessarily mean the project is cancelled, nor does the reported notice establish the final cost or the extent of any financial relief. For investors, the key questions are whether construction can stay on schedule, how much the project will ultimately cost and whether Oracle's growing AI infrastructure commitments can deliver returns that justify the spending.&nbsp;The latest development underlines a central challenge for the AI industry: demand for computing power is rising rapidly, but building the facilities to meet it is proving complex, expensive and exposed to delays.

Oracle shares fell nearly 5% in pre-market trading after reports it issued a force majeure notice on its New Mexico Project Jupiter data centre. The move could allow payment delays if construction setbacks push the AI facility beyond its planned 2028 launch

Oracle shares fell nearly 5% in pre-market trading on Thursday after reports that the company had invoked force majeure on a massive AI data centre project in New Mexico. The move is reportedly aimed at protecting Oracle from financial exposure if construction delays push the facility beyond its planned launch in 2028. The development puts a spotlight on the growing costs and risks behind the artificial intelligence boom. Oracle is not reportedly walking away from the project. Instead, it is seeking flexibility over payments as its infrastructure ambitions face construction, regulatory and financing challenges. Why has Oracle invoked force majeure? According to a Bloomberg report cited by Reuters, Oracle sent a force majeure notice to the project's developer, a unit of Blue Owl Capital. The notice is reportedly intended to delay payment obligations if the data centre, known as Project Jupiter, is delayed and fails to come online as planned. MarketScreener Force majeure is a contractual provision that can offer relief from certain obligations when extraordinary circumstances beyond a party's control disrupt a project. Whether it applies depends on the contract and the circumstances. Oracle is reportedly seeking to protect itself against delays and additional costs, rather than give up its role as the facility's main tenant. Reuters said it could not independently verify Bloomberg's report. Oracle and Blue Owl did not immediately respond to Reuters' requests for comment. What is Project Jupiter and why does it matter? Project Jupiter is a major data centre campus in Doña Ana County, New Mexico, linked to Oracle's wider AI infrastructure expansion and its partnership with OpenAI. The facility is designed to support enormous computing workloads needed to train and run AI models. Such projects require substantial investment in buildings, power supply, cooling systems and specialised computing equipment. The New Mexico project has faced regulatory and local opposition, including disputes involving the proposed power infrastructure. Oracle said in a September 14 statement that the data centre campus and a proposed microgrid are separate facilities, and that construction of the data centre buildings does not require the air-quality permit at the centre of a separate legal proceeding. Oracle. Is Oracle abandoning its AI data centre plans? There is no confirmation that Oracle is exiting Project Jupiter. In fact, the reported notice appears aimed at protecting the company if the timeline slips, rather than cancelling its role. Oracle has said the project remains on schedule and that it is committed to New Mexico, according to a Bloomberg report cited by Yahoo Finance. Yahoo Finance The distinction matters. A payment delay would not necessarily mean the project is cancelled, nor does the reported notice establish the final cost or the extent of any financial relief. For investors, the key questions are whether construction can stay on schedule, how much the project will ultimately cost and whether Oracle's growing AI infrastructure commitments can deliver returns that justify the spending. The latest development underlines a central challenge for the AI industry: demand for computing power is rising rapidly, but building the facilities to meet it is proving complex, expensive and exposed to delays.

Oracle shares fell nearly 5% in pre-market trading after reports it issued a force majeure notice on its New Mexico Project Jupiter data centre. The move could allow payment delays if construction setbacks push the AI facility beyond its planned 2028 launch

Oracle shares fall 5% as costly AI infrastructure project raises investor questions

Oracle has begun laying off thousands of employees worldwide, with estimates suggesting total job cuts could reach between 20,000 and 30,000. Workers across regions reportedly received early-morning emails informing them that their roles had been eliminated with immediate effect. The software maker is reportedly dealing with a plummeting stock price tied to hefty capital commitments for building out AI infrastructure.&nbsp;The email cited “organisational change” and stated plainly: “Today is your last working day.” It added, “We are grateful for your dedication, hard work, and the impact you have made during your time with us.” Employees were told they would be eligible for severance “subject to the terms and conditions” after signing termination paperwork. The layoffs span multiple divisions, including cloud, sales, health, customer success and NetSuite, reflecting a broad restructuring rather than isolated cuts.&nbsp;<h2>AI expansion driving cost-cutting</h2>&nbsp;The primary trigger behind the layoffs is Oracle’s aggressive push into artificial intelligence infrastructure. The company is significantly increasing investment in data centres to compete with cloud leaders and support large-scale AI workloads. According to reports, this expansion comes at a substantial cost. Oracle has raised tens of billions of dollars to fund projects, including large AI data centre initiatives linked to OpenAI. The scale of spending has forced the company to reduce operational costs elsewhere, with workforce reduction emerging as a key lever.&nbsp;&nbsp;ALSO READ: <a href="https://www.wionews.com/photos/-b-52-bombers-fly-over-iran-how-us-veteran-bomber-remains-indispensable-next-to-b-1-and-b-2-1774968358568">'B‑52 bombers fly over Iran': How US’ veteran bomber remains indispensable next to B‑1 and B‑2</a>&nbsp;According to a CNBC report, Oracle continues to rely on its flagship database business for storing and managing corporate data. In recent years, however, the company has significantly increased capital expenditure as it builds data centre infrastructure to support AI workloads, positioning itself alongside cloud rivals such as Amazon, though it remains smaller in scale. The company has also turned to the debt market to fund this expansion, announcing a $50 billion raise earlier this year, with no further borrowing planned for 2026.&nbsp;&nbsp;Analysts estimate that cutting between 20,000 and 30,000 roles could generate $8 billion to $10 billion in additional free cash flow, helping to sustain these capital-intensive investments.&nbsp;<h2>Financial pressure and market response</h2>&nbsp;Oracle’s restructuring is also tied to mounting financial pressure. The company expects up to $2.1 billion in restructuring costs in fiscal 2026, largely driven by severance and related expenses.&nbsp;Despite reporting strong revenue and continued demand for its cloud services, Oracle’s stock has fallen sharply, down nearly 25–30 per cent this year, dropping more than all of tech’s megacaps, this comes amid investor concerns over rising debt and the risks associated with its AI-heavy strategy. However, markets reacted positively in the short term, with shares rising following news of the layoffs, reflecting expectations of improved cost efficiency.&nbsp;ALSO READ: <a href="https://www.wionews.com/world/oracle-layoffs-shock-30-000-jobs-slashed-worldwide-how-much-severance-are-employees-actually-getting-1775028211102">Oracle layoffs shock: 30,000 jobs slashed worldwide, how much severance are employees actually getting?</a>&nbsp;<h2>Part of a wider tech industry shift</h2><h2>&nbsp;</h2>Oracle’s decision reflects a broader trend across the technology sector, where companies are cutting jobs to redirect resources towards artificial intelligence. More than 70 tech firms have collectively eliminated tens of thousands of roles this year alone as AI reshapes business priorities.&nbsp;While Oracle has not officially confirmed the full scale of the layoffs, the developments underline a clear shift: prioritising AI-driven growth, even as it results in large-scale workforce reductions across its existing operations.

The primary trigger behind the layoffs is Oracle’s aggressive push into artificial intelligence infrastructure. The company is significantly increasing investment in data centres to compete with cloud leaders and support large-scale AI workloads.

Oracle has begun laying off thousands of employees worldwide, with estimates suggesting total job cuts could reach between 20,000 and 30,000. Workers across regions reportedly received early-morning emails informing them that their roles had been eliminated with immediate effect. The software maker is reportedly dealing with a plummeting stock price tied to hefty capital commitments for building out AI infrastructure. The email cited “organisational change” and stated plainly: “Today is your last working day.” It added, “We are grateful for your dedication, hard work, and the impact you have made during your time with us.” Employees were told they would be eligible for severance “subject to the terms and conditions” after signing termination paperwork. The layoffs span multiple divisions, including cloud, sales, health, customer success and NetSuite, reflecting a broad restructuring rather than isolated cuts. AI expansion driving cost-cutting The primary trigger behind the layoffs is Oracle’s aggressive push into artificial intelligence infrastructure. The company is significantly increasing investment in data centres to compete with cloud leaders and support large-scale AI workloads. According to reports, this expansion comes at a substantial cost. Oracle has raised tens of billions of dollars to fund projects, including large AI data centre initiatives linked to OpenAI. The scale of spending has forced the company to reduce operational costs elsewhere, with workforce reduction emerging as a key lever. ALSO READ: 'B‑52 bombers fly over Iran': How US’ veteran bomber remains indispensable next to B‑1 and B‑2 According to a CNBC report, Oracle continues to rely on its flagship database business for storing and managing corporate data. In recent years, however, the company has significantly increased capital expenditure as it builds data centre infrastructure to support AI workloads, positioning itself alongside cloud rivals such as Amazon, though it remains smaller in scale. The company has also turned to the debt market to fund this expansion, announcing a $50 billion raise earlier this year, with no further borrowing planned for 2026. Analysts estimate that cutting between 20,000 and 30,000 roles could generate $8 billion to $10 billion in additional free cash flow, helping to sustain these capital-intensive investments. Financial pressure and market response Oracle’s restructuring is also tied to mounting financial pressure. The company expects up to $2.1 billion in restructuring costs in fiscal 2026, largely driven by severance and related expenses. Despite reporting strong revenue and continued demand for its cloud services, Oracle’s stock has fallen sharply, down nearly 25–30 per cent this year, dropping more than all of tech’s megacaps, this comes amid investor concerns over rising debt and the risks associated with its AI-heavy strategy. However, markets reacted positively in the short term, with shares rising following news of the layoffs, reflecting expectations of improved cost efficiency. ALSO READ: Oracle layoffs shock: 30,000 jobs slashed worldwide, how much severance are employees actually getting? Part of a wider tech industry shift Oracle’s decision reflects a broader trend across the technology sector, where companies are cutting jobs to redirect resources towards artificial intelligence. More than 70 tech firms have collectively eliminated tens of thousands of roles this year alone as AI reshapes business priorities. While Oracle has not officially confirmed the full scale of the layoffs, the developments underline a clear shift: prioritising AI-driven growth, even as it results in large-scale workforce reductions across its existing operations.

The primary trigger behind the layoffs is Oracle’s aggressive push into artificial intelligence infrastructure. The company is significantly increasing investment in data centres to compete with cloud leaders and support large-scale AI workloads.

Oracle layoffs: Why did the tech giant axe 30,000 jobs globally without warning?

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Oracle shares fall 5% as costly AI infrastructure project raises investor questions

Oracle layoffs: Why did the tech giant axe 30,000 jobs globally without warning?