Oracle Tumbles After Report That It’s Lost Nearly $100 Million From Renting Out Access To Nvidia’s Blackwell Chips
THOMSON REUTERS10-07
Oracle tumbles 5% after report that it’s lost nearly $100 million from renting out access to Nvidia’s Blackwell chips.
“In the three months that ended in August, Oracle lost nearly $100 million from rentals of Nvidia’s Blackwell chips, which arrived this year.” the Information reported.
The report notes that some of this is a timing issue, a gap between getting data centers equipped for use and when customers start paying for services.
Citing internal documents, The Information says that Oracle’s “fast-growing cloud business has had razor-thin gross profit margins in the past year or so,” booking a gross profit of $125 million on rentals of servers that utilize Nvidia chips for the three months ending in August, for a gross margin of just under 14%.
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