Oracle Reports Near-Full Utilization of AI Chips, Highlighting Strong Demand for Nvidia GPUs
Oracle reported that its fleet of over 300,000 AI chips—mostly from Nvidia—ran at a utilization rate of 97.9% in the fiscal first quarter of 2027. This high usage came as Oracle nearly tripled GPU capacity compared to the prior quarter and delivered 850 megawatts of AI computing power. The company's cloud infrastructure revenue surged by 121% year-over-year, reaching $7.4 billion. Oracle also noted that demand for its hardware outpaced supply, with new AI contracts exceeding $30 billion in the period and a backlog of contracted but undelivered services rising to $664 billion. Additionally, older GPUs were renewed or resold at a 20% premium despite typically depreciating over time. Nvidia's own financial results showed strong growth as well, with revenue climbing by 106% year-over-year in its fiscal second quarter of 2027 to $96.2 billion and data center sales accounting for nearly all of that increase.
Topics: AI Cloud Computing Earnings Report GPU Demand