ORACLE RIDES MAJOR DEALS WITH OPENAI, NVIDIA TO TURN AROUND CLOUD BUSINESS

Summary from the TLDR newsletter

OpenAI is slated to become Oracle's largest customer, with the companies having struck deals for more than 5 gigawatts of computing power, an unprecedented sum. Another of Oracle's largest customers is Nvidia, which rents capacity from an Oracle cluster of H100 chips in Japan and from a data center being built in Indonesia. While Oracle's cloud business is still orders of magnitude smaller than Amazon's, there's plenty of room for growth. With all of its recent spending, Oracle recorded a negative annual cash flow for the first time since 1990. Questions about the longevity and margins of offering infrastructure to train AI models remain.