Oracle's AI Chips Ran 97.9% Utilized Last Quarter. For Nvidia, That Is What a Shortage Looks Like.
The cloud giant added more than 300,000 GPUs in one quarter, and its fleet still ran nearly full. Even 4-year-old chips got a price bump.
Overview
Oracle (NYSE:ORCL) spent Thursday evening's earnings call putting numbers on something Nvidia (NASDAQ:NVDA) investors usually have to take on faith. The software and cloud giant delivered 850 megawatts of artificial intelligence (AI) capacity to customers in its fiscal first quarter of 2027 (the period ended Aug. 31). That hardware contained more than 300,000 graphics processing units (GPUs). And Oracle's GPU fleet ran at 97.9% utilization, meaning nearly every chip was busy serving customers.
Most of those chips are Nvidia's. Oracle's cluster design for its biggest AI deployments connects hundreds of thousands of Nvidia GPUs, and its largest planned builds target up to 800,000 of them.
Details
So while Nvidia didn't report this week, a company installing its chips by the hundreds of thousands just showed what demand for them looks like.
Source
Originally published at www.fool.com.