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Older GPUs, bigger ego
Oracle just gave the AI hardware crowd a very specific kind of confidence boost: apparently, yesterday’s GPUs are still today’s cash machines. On its fiscal 2027 first-quarter call, Oracle said the GPU capacity coming up for renewal was either renewed or resold at a 20% premium, with most of that hardware at least four years old.
That’s the kind of sentence that makes depreciation spreadsheets quietly panic.
AI infrastructure is still the main character
CEO Clay Magouyrk said GPU longevity and value continue to impress, and Oracle also said it delivered 850 megawatts of AI capacity containing more than 300,000 GPUs since the end of the prior quarter. First-quarter deliveries were nearly three times the fourth-quarter figure and represented 73% of the AI capacity it delivered during the prior fiscal year.
A few more things investors will probably circle in neon:
- more than $30 billion in additional AI contracts closed during the quarter
- GPU utilization at 97.9%
- no additional capital required for those contracts, at least according to the company
That combo is basically Oracle saying: the demand is real, the gear is busy, and the rent keeps going up.
Nvidia gets a victory lap too
The Oracle update also echoes Jensen Huang’s long-running pitch that Nvidia hardware is more like a productive asset than a disposable gadget. Huang has said Nvidia compute is “fungible, durable and highly rentable,” and Oracle’s renewal pricing is the kind of real-world example that makes that line sound less like hype and more like a business model.
Nvidia is also tied into this AI-capital machine through partnerships with big names like Apollo, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR, which have all been enlisted to help mobilize capital over time.
Why you should care
Oracle beat earnings too, posting $1.92 a share versus the $1.74 Street estimate and revenue of $19.35 billion versus $19.14 billion expected. It also guided second-quarter revenue growth of 30% to 34% and cloud growth of 65% to 71%.
So yes, the stock popped after hours, even though it had closed down during the session. Big picture: Oracle is trying to prove AI infrastructure is not just a shiny spendfest — it can also be a high-return rental business where old GPUs can still charge premium rates.