Oracle's AI Chips Ran 97.9% Utilized Last Quarter. For Nvidia, That Is What a Shortage Looks Like.
Motley Fool·
- Oracle reported that its AI hardware fleet, consisting of over 300,000 GPUs, operated at a 97.9% utilization rate during its fiscal first quarter of 2027 while delivering a record 850 megawatts of capacity.
- The company closed over $30 billion in new AI contracts and saw 4-year-old GPUs renew at a 20% premium, highlighting intense market demand that outpaces supply.
- These disclosures indicate that Nvidia's growth is primarily constrained by manufacturing capacity rather than customer appetite.
