US media: Oracle’s NVIDIA chip leasing business only has a gross profit margin of 14%

CNBC quoted San Francisco technology news website "The Information" on Tuesday (October 7) as reporting that Oracle Corp.'s internal documents showed that in the three months to August, NVIDIA's chip cloud leasing business revenue was US$900 million and its gross profit margin was only 14%, which is far lower than Oracle's overall gross profit margin (about 70%).

Reports pointed out that the high price of NVIDIA chips and the aggressive pricing strategy adopted by Oracle in the artificial intelligence (AI) chip leasing business have caused the outside world to question the profitability of related businesses.

Oracle fell 2.52% on Tuesday to close at $284.24, a new closing low since September 30. The year-to-date increase has narrowed to 70.57%.

According to Oracle’s first-quarter financial report for fiscal year 2026 released in September, free cash flow in the past four quarters was -$5.88 billion.

Further reading: Oracle says AI cloud revenue will surge, soaring 20% ​​after hours, hitting record highs US media: OpenAI, Oracle sign $300 billion computing power contract OpenAI CFO: Revenue has surged this year, now is the first round of the AI ​​era