11:55 AM EDT, 10/07/2025 (MT Newswires) -- Oracle (ORCL) is seeing thin profit margins in its fast-growing artificial intelligence cloud server business, according to internal documents cited by The Information on Monday.

The company generated about $900 million from renting servers powered by Nvidia ( NVDA ) chips in the quarter ended August, posting a 14% gross profit margin, or roughly $125 million. Oracle's AI cloud margins have averaged around 16% over the past year, well below analyst estimates, the report noted.

The documents show Oracle lost nearly $100 million from rentals of Nvidia's ( NVDA ) Blackwell GPUs in the most recent quarter. The firm's graphics processing unit cloud business now accounts for roughly 27% of its total cloud server revenue, which reached $10 billion in its last fiscal year, the report noted.

Oracle and Nvidia ( NVDA ) did not immediately respond to MT Newswires' request for comment on the matter.

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