Oracle data shows challenge of renting out Nvidia chips, The Information says

Oracle (ORCL) became the best-performing megacap stock of 2025 after its executives said last month that the once-sleepy database firm will generate an astonishing $381B in revenue from renting out specialized cloud servers to OpenAI and other artificial intelligence developers over the next five fiscal years. But internal documents show the fast-growing cloud business has had razor-thin gross profit margins in the past year or so, lower than what many equity analysts have estimated, The Information’s Anissa Gardizy, Anita Ramaswamy and Cory Weinberg report. That could raise questions about whether the AI cloud expansions undertaken by Oracle and its rivals will affect profitability and sustain investors’ expectations.

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