SoftBank shares fell more than 3% in early Tokyo trading after reports that Oracle had issued a force majeure notice to a unit of Blue Owl involved in developing Project Jupiter in New Mexico. The project forms part of Stargate, a planned $500 billion AI infrastructure initiative involving Oracle, OpenAI and SoftBank.
Oracle’s move relates to potential delays in securing power for the data-centre campus and is intended to protect the company against payment obligations if the project is delayed and does not become operational as planned in 2028, according to people familiar with the matter cited in reports.
The development highlights a growing challenge for the AI investment cycle. Demand for computing capacity has encouraged technology companies and infrastructure providers to commit unprecedented amounts of capital to data centres, chips, power generation and related equipment. However, securing electricity, construction capacity and financing at the required scale has become increasingly complex.
The issue is particularly relevant for SoftBank, which has expanded its financial exposure to AI through investments in OpenAI and other infrastructure-related businesses. The Japanese group raised about $11.1 billion through dollar- and euro-denominated bonds during the week, with part of the proceeds intended to support its AI investment strategy.
At the same time, investors in corporate debt have become more selective towards AI-related borrowing. Reuters reported earlier this week that spreads on AI-linked bonds had widened to about 115 basis points, compared with roughly 78 basis points for the broader investment-grade market, as investors assess the volume and unpredictability of future borrowing.
The distinction is important for the wider technology sector. Investors have not necessarily questioned the financial strength of major technology companies, but they are increasingly examining whether the scale and timing of capital expenditure can generate sufficient returns.
Data-centre projects must also contend with long construction periods, power availability and complex financing structures. Delays could increase costs and affect projected returns, particularly where multiple companies are dependent on the same infrastructure timetable.
For SoftBank and other major AI investors, the latest development reinforces the importance of execution alongside technological ambition. As AI infrastructure spending continues to expand, markets are increasingly assessing not only the potential of the technology but also the financial discipline required to build the physical infrastructure supporting it.
