TechCheck Oracle’s thin-margin alarm bell, Plus Qualcomm’s robotics bet 10/7/25
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Oct 7, 2025 Oracle's financial struggles come to light as their cloud division faces challenges in profiting from Nvidia chip rentals. Investors are gearing up for Oracle AI World, eager to hear about profitability and new deals with OpenAI. Meanwhile, Qualcomm is making waves by acquiring Arduino, signaling a bold move into the robotics space and enhancing its ecosystem for physical AI. This deep dive into the financial outlook and strategic shifts in tech sets the stage for what's next in the industry.
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Oracle’s Margin Squeeze On AI Chip Rentals
- Oracle is expanding rapidly into AI data centers but is showing razor-thin gross margins on NVIDIA chip rentals.
- Rising power, labor, and CapEx for data centers are squeezing short-term profitability despite strong backlog growth.
Look To Oracle AI World For Financial Clues
- Watch Oracle's analyst day at Oracle AI World for clarity on revenue, profitability, and long-term AI deals.
- Expect questions about OpenAI contract economics, data center learning curves, and potential cost improvements like utility deals or nuclear power.
Qualcomm Builds A Robotics Developer Funnel
- Qualcomm's acquisition of Arduino creates an end-to-end developer ecosystem aimed at robotics and physical AI.
- Hooking 33 million Arduino developers could convert prototyping users into long-term Qualcomm customers for edge robotics chips and services.