Oracle stock slips 5% on report company is seeing thin cloud margins from Nvidia chips

Core Insights - The Stargate AI data center project is a collaboration between OpenAI, Oracle, and SoftBank, with support from President Donald Trump, aimed at building AI infrastructure in the US [1] - Oracle's stock fell by 5% following concerns about its plans to purchase billions of Nvidia chips for cloud services [1] - Oracle's gross margins in its Nvidia cloud business were reported at 14% on $900 million in sales, significantly lower than its overall gross margin of around 70% [2] - The high costs of Nvidia chips and aggressive pricing for AI chip rentals may pose profitability challenges for Oracle as it transitions into a key player in the cloud and AI sectors [2] - Oracle reported a 359% increase in its backlog of cloud contracts year-over-year, forecasting $144 billion in cloud infrastructure revenue by 2030, up from over $10 billion in 2025 [3] - A significant portion of the projected revenue is attributed to Oracle's involvement in the Stargate project, which includes the establishment of five large data centers equipped with Nvidia AI chips [3]