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Oracle Craters 4%+ as Report Questions Feasibility of Oracle's Plan to Buy Chips from Nvidia
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Oracle (ORCL.US) planned to purchase billions of Nvidia (NVDA.US) chips to rent them to customers like OpenAI as a cloud provider, according to foreign media. Following the news, Oracle's stock price last cratered over 4%. As of the quarter ended August, Oracle's Nvidia cloud business sales amounted to US$900 million, with a gross margin of only 14%, significantly lower than its overall gross margin of about 70%, the report quoted internal documents as saying. Due to the high prices of Nvidia chips, Oracle adopted an aggressive low-price strategy in its AI chip rental business, which may pressure its profitability, the report added. AASTOCKS Financial News Website: www.aastocks.com |
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