Speaking of AI Bubbles... ORCL (Patreon)

As previously noted, certain costs have skyrocketed. I've stressed that Elon Musk is uniquely positioned to integrate massive GPU clusters effectively—everyone else relies on renting or leasing them, putting companies like OpenAI and CoreWeave at risk.

Just a month back, Oracle's stock surged on rosy growth projections: "We inked four multi-billion-dollar deals with three separate clients in Q1," announced CEO Safra Catz, highlighting a whopping $455 billion contract backlog. Yet, fresh internal documents uncovered by The Information reveal a stark contrast. Oracle's AI cloud operations are scraping by with wafer-thin margins—barely 14 cents of profit per dollar from Nvidia server rentals, slimmer than many retail outfits and occasionally dipping into outright losses. Figures show margins swinging between 10% and 20%, clocking in at an average of 16%. In fact, the company reportedly hemorrhaged nearly $100 million last quarter on rentals of Blackwell chips, the very tech fueling its so-called AI surge.