Oracle loses $100 million on Blackwell GPU chips
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11:48, 09.10.2025
According to some analysts, Oracle is experiencing significant financial difficulties related to the leasing of graphics processors. Over the past quarter, the company's losses reached $100 million due to Nvidia's Blackwell chips. This equipment is state-of-the-art, but the rental margin is only 16%.
Reasons for the company's losses
Since demand for rentals remains quite high, the main reasons for the losses can be attributed to market prices and strong pressure. Customers prefer to bargain, which significantly reduces profitability, making it impossible to predict possible developments and the company's potential income. Even when servers are fully loaded, profits do not reach high levels.
Computing power plays an important role, especially in competition in the machine learning and AI segment, which is why renting GPU chips is becoming a very popular option. Many large companies, including Oracle, offer powerful graphics processors for rent.
Pressure on profitability in this segment will come from the cost of purchasing and maintaining the equipment. Even during peak demand for the service, it is necessary to plan expenses and the potential rental price well, which does not always go smoothly.
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