- $NVDA sells GPUs to $ORCL. Oracle uses to power its data centers
- Oracle builds cloud on those GPUs
- Nvidia rents compute back via signed deals from Oracle
Nvidia gets recurring revenue from hardware sales and cloud services without owning all the data centers. Oracle turns capex (buying GPUs) into opex revenue by renting compute to Nvidia, OpenAI, and others.
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Posted by ramdomwalk