---
title: "Reports question the feasibility of Oracle's plan to purchase chips from NVIDIA, causing the former's stock price to drop over 4%"
description: "According to foreign media reports, Oracle plans to purchase billions of dollars worth of NVIDIA chips to rent as cloud services to clients such as OpenAI. As a result of this news, Oracle's stock pri"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/260193440.md"
published_at: "2025-10-07T16:50:16.000Z"
---

# Reports question the feasibility of Oracle's plan to purchase chips from NVIDIA, causing the former's stock price to drop over 4%

> According to foreign media reports, Oracle plans to purchase billions of dollars worth of NVIDIA chips to rent as cloud services to clients such as OpenAI. As a result of this news, Oracle's stock price fell by more than 4%. Internal documents show that Oracle's NVIDIA cloud business had sales of $900 million as of August, with a gross margin of only 14%, far below the overall gross margin of 70%. Due to the high cost of NVIDIA chips, Oracle has adopted a low-price strategy in its artificial intelligence chip rental business, which may compress profit margins

According to foreign media reports, Oracle (ORCL.US) plans to purchase billions of dollars worth of NVIDIA (NVDA.US) chips to rent out as a cloud service provider to clients such as OpenAI. Following this news, Oracle's stock price has recently fallen by over 4%.

The report cites internal documents stating that for the quarter ending in August, Oracle's sales from its NVIDIA cloud business amounted to $900 million, with a gross margin of only 14%, far below its overall gross margin of about 70%. The report further states that due to the high prices of NVIDIA chips, Oracle is adopting an aggressive low-price strategy in its artificial intelligence chip rental business, which may pressure its profit margins

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.