Oracle made $125M on $900M worth of rev from renting out data centers powered by Nvidia GPUs... this works out to a 14% profit margin. That’s a sh---y profit margin in a normal business, it’s VERY modest in a highly volatile industry like this one. It’s much smaller than the roughly 70% gross margin Oracle gets on non-AI services…
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Earnings day coming soon !!!
That doesn’t make any sense. The GPUs will be obsolete 3-5 years and need replacing, yet at this rate it takes 6 years to pay off their purchase?
Oracle made $125M on $900M worth of rev from renting out data centers powered by Nvidia GPUs...
...and Oracle itself rents the data center space from Equinix, among others. Snake oil behind the smoke & mirrors behind the curtain.