SoftBank Shares Fall as Oracle Flags Stargate Data Center Delay Risk

SoftBank Group shares dropped on Friday after Oracle moved to protect itself against possible delays at a major New Mexico data center, adding to investor concerns over the financing and execution risks surrounding the massive AI infrastructure buildout.

SoftBank stock fell 3.1% to 6,154 yen after reports that Oracle issued a force-majeure notice to a Blue Owl unit responsible for developing Project Jupiter.

The notice relates to potential delays in securing sufficient power for Project Jupiter, a large data-center campus connected to Stargate, the $500 billion artificial intelligence infrastructure initiative backed by Oracle, OpenAI and SoftBank.

Oracle is seeking protection from payment obligations if delays prevent the facility from becoming operational in 2028 as scheduled, according to people familiar with the matter cited by Reuters and Bloomberg.

The development highlights growing challenges facing AI data-center projects as companies commit hundreds of billions of dollars to computing infrastructure. Developers are confronting constraints involving electricity supply, construction timelines and financing, raising questions about whether planned capacity can be delivered on schedule.

The issue comes at a sensitive time for SoftBank as the Japanese investment group increases borrowing to fund its aggressive AI strategy. SoftBank raised $11.1 billion through dollar- and euro-denominated bonds this week, with part of the proceeds intended to support its investment in OpenAI.

Credit markets are also showing greater caution toward AI-related borrowing. Reuters reported that spreads on AI-linked bonds have widened to roughly 115 basis points, compared with about 78 basis points for the broader market. Debt issuance by hyperscalers is also expected to increase as technology companies finance new data centers and advanced chips.

SoftBank has additional exposure to the AI infrastructure boom through SB Energy, which is preparing for a potential U.S. listing. The company has a reported $430 billion data-center backlog, although much of its contracted capacity is concentrated among SoftBank and OpenAI and extends over long-term development schedules.

The Oracle notice adds another layer of uncertainty for investors assessing the enormous capital requirements behind Stargate and the broader global AI infrastructure expansion.