Bloom Energy vs. Oracle: Which AI Infrastructure Stock Is the Better Buy After the Jupiter Setback?

Oracle (NYSE: ORCL) and Bloom Energy (NYSE: BE) are both integral parts of Project Jupiter, a massive data center that is being built by a unit of Blue Owl Capital (NYSE: OWL). The project isn't going as well as planned, prompting Oracle to cite "force majeure" to protect itself in case Project Jupiter isn't completed. Oracle investors should be far more worried about Project Jupiter than Bloom Energy Investors. Here's why that likely makes Bloom Energy a more attractive investment for those looking to lean into the artificial intelligence build-out.

What is Project Jupiter?

Oracle is building data centers at a rapid clip. Project Jupiter is one of the data centers on its construction list. Located in New Mexico, the data center's campus is expected to be larger than Central Park in New York City. The data center is expected to be part of OpenAI's Stargate Project, which will include multiple data centers supporting artificial intelligence (AI). Bloom Energy is involved because it is expected to provide hydrogen fuel cells to power the Jupiter Project once it is complete.

Image source: Getty Images.

Oracle has cited "force majeure" because the Jupiter Project has faced material pushback from local residents and has been hampered by delays. For example, a key natural gas pipeline expected to supply fuel to Bloom Energy fuel cells has been delayed. Oracle isn't walking away from the project; it is simply trying to protect itself if the project gets scrapped. It isn't clear if this tactic will actually help in a worst-case scenario, but this is an appropriate legal step for the company to take, just in case.

Oracle has more to lose than Bloom Energy

Bloom Energy's hydrogen fuel cells are a relatively small part of the overall project. And while it would be unfortunate if the company doesn't sell the fuel cells earmarked for Project Jupiter to the project, it will likely be able to sell them to another company relatively easily. In fact, Bloom Energy reported that its product backlog grew by 140% year over year to $6 billion as it entered 2026. The company reports its backlog only once a year, but it is likely to have increased further as 2026 has progressed.

The benefit of Bloom Energy's fuel cells is material, as they allow data centers to generate their own power. That means a data center doesn't need to be connected to the grid, and thus new data centers don't have to wait for a grid connection. In addition, a data center that provides its own power doesn't have to contend with the fear that it will increase electricity costs for local customers. Project Jupiter is a big deal for Bloom Energy, but it is just one of many opportunities the company has to sell its fuel cells.

Oracle, on the other hand, is building a massive data center. It is a one-of-a-kind item that can't easily be replaced with another project. If Project Jupiter falls through, a big piece of Oracle's AI growth plan will have fallen flat. That brings into question the company's long-term outlook. While Project Jupiter hasn't been canceled, Oracle clearly has more at stake than Bloom Energy if it is.

Bloom Energy has more flexibility

At the end of the day, Oracle is taking on a big risk by attempting to build a big AI data center. Bloom Energy is just providing some picks-and-shovels parts that will help bring that project to fruition. And since Bloom Energy can easily sell the fuel cells intended for Project Jupiter to other customers, it is likely better positioned to handle the hit if Project Jupiter isn't built. Oracle, meanwhile, will likely end up with a material write-off, even if its "force majeure" helps to protect it.

That said, both Oracle and Bloom Energy are high-risk investments that only aggressive growth investors should consider. But if you are concerned about Project Jupiter, Bloom Energy is probably the better investment choice right now.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Oracle. The Motley Fool has a disclosure policy.