Oracle, the major U.S. IT company, has issued a force majeure notice to a subsidiary of U.S. asset manager Blue Owl regarding a large data center development it is pursuing in New Mexico, citing the possibility of delays in securing power. People familiar with the matter confirmed this to Reuters on the 24th. Oracle shares fell more than 3% following the news. According to the people, under the contract, securing power for the data center site is Oracle's responsibility, and Oracle cannot terminate the lease under any circumstances. Blue Owl has invested about 3 billion dollars in the project, with Oracle bearing the debt costs. According to Bloomberg, which reported earlier, Oracle is not withdrawing as the main tenant, but rather seeking to delay the start of payments in case the data center, called Project Jupiter, cannot begin operations as planned in 2028. Project Jupiter is planned to develop a cluster of data centers on a site of about 1,400 acres, and according to reports it has secured 18 billion dollars in financing from a banking syndicate, part of a large contract under which Oracle will provide artificial intelligence computing capacity to U.S. company OpenAI. It has also been incorporated into the Stargate plan to build AI infrastructure in the United States, a plan involving OpenAI, SoftBank Group, Oracle and others that calls for investment on a scale of 500 billion dollars.
Palantir and Nebius Announce Strategic AI Infrastructure Partnership
Palantir Technologies and Nebius Group announced a strategic partnership on September 8 to bring Nebius's AI-native compute infrastructure into Palantir's commercial platform. Palantir designated Nebius as its preferred sovereign AI infrastructure partner, integrating Nebius compute and inference endpoints directly inside the Palantir enterprise perimeter. The alliance allows commercial clients to deploy open AI models and run compute-heavy workloads while maintaining strict control over proprietary data, and the companies will also collaborate on modular data center deployments to rapidly scale compute capacity where power is available. For Palantir, the deal provides dedicated high-performance compute capacity supporting its rapid U.S. commercial expansion and 157% net dollar retention rate, while for Nebius it validates its full-stack AI cloud infrastructure and unlocks direct access to Palantir's enterprise customer base. The partnership carries execution and capital risks for both sides, with Palantir facing higher hosting and delivery expenses and Nebius remaining subject to persistent EBIT losses and negative free cash flow as it aggressively builds out data centers and acquires GPUs.
Fidelity Strategist Calls AI Trade 'Dead Money' as $3.3 Trillion Buildout Draws Doubts
Fidelity Investments Director of Global Macro Jurrien Timmer said Tuesday that the artificial intelligence trade has been "dead money" for more than three months, even as hyperscalers keep pouring hundreds of billions into the technology's buildout. In a post on X, Timmer said token expenditures and GPU lease rates are "all flat to down," while the price of memory appears to be the only thing still going up. Fidelity data show the Silicon Data LLM token expenditure index down 49% on a 50-day basis, and GPU rental rates for both H100 and A100 chips have cooled sharply after peaking earlier this year at gains of 56% and 16%, respectively. Timmer said the buildout "is inflationary with an unknown return for the companies who are investing trillions into compute," adding that corporate demand for capital, both debt and equity, is climbing at "a $3.3 trillion clip." U.S. hyperscalers are on pace to spend roughly $916 billion on capital expenditures over the next 12 months, with combined capex from Alphabet Inc., Amazon.com, Inc., Microsoft Corp., Meta Platforms Inc., Oracle Corp., and Space Exploration Technologies Inc. expected to exceed $1 trillion in 2027. Despite the near-term stall, Timmer said he still believes AI "will change our lives" and could eventually "unleash a productivity miracle that raises the economy's non-inflationary speed limit."
TD Synnex Q3 2026: Record Billings Surge 40% to $31.8 Billion as Hyve Jumps 117%
TD Synnex Corp reported record quarterly results with non-GAAP gross billings of $31.8 billion, up 40% year-over-year and above the high end of guidance. Non-GAAP operating income rose 55% to $736 million and non-GAAP EPS climbed 59% to $5.68, also above the high end of guidance, while GAAP operating income rose 68% to $643 million and GAAP EPS rose 89% to $5.18. Within the total, the Distribution segment contributed $24.8 billion in gross billings, up 27% year-over-year with double-digit growth in every region, and the Hyve segment contributed $7 billion, up 117%, with Hyve manufacturing gross billings growing in excess of 130% and supply chain services up in excess of 90%. Hyve's non-GAAP operating margin narrowed to 3.61% from 5.04% a year earlier on lower-margin large AI server programs, and free cash flow was a consumption of approximately $1 billion driven by higher inventory in Hyve's supply chain business and new customer programs. For the fourth quarter, TD Synnex guided to non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, revenue of approximately $22.2 billion, plus or minus $400 million, and non-GAAP diluted EPS of approximately $5.90, plus or minus $0.25, up about 54% at the midpoint. The company returned $100 million in share repurchases and $38 million in dividends during the quarter and declared a quarterly dividend of $0.48 per share.
SoftBank Group Corp.
Blue Owl Capital Inc
Oracle Corporation