OFSS shares tumble 5% after Oracle sends 'force majeure' notice for data centre project. Are AI worries coming true?
Oracle Financial Services Software (OFSS) shares tumbled over 5% after parent company Oracle issued a force majeure notice regarding a massive New Mexico AI data centre project. The development triggered financing concerns across AI infrastructure, sending OFSS stock to a nine-week low of Rs 10,332 on the NSE.
Oracle Financial Services Software (OFSS) shares fell over 5% on Friday after its US-based parent Oracle issued a force majeure notice to developer Blue Owl. The notice aims to protect Oracle from potential delays at a large data centre project in New Mexico, which is part of the AI infrastructure financing market worth trillions of dollars.
The OFSS shares fell to Rs 10,332 on the NSE, marking the lowest point for the stock in over nine weeks since July 23. This is the largest loser on the Nifty IT index, which is down around 1%. The force majeure notice was related to Project Jupiter, a data centre campus being built by Blue Owl's unit STACK Infrastructure to support OpenAI's ChatGPT.
Despite Oracle's notice, Blue Owl stated that it did not change the commitment to the project. As a result, Oracle's shares dropped around 3.5% on Wall Street, while Blue Owl's shares fell around 4%.
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