Oracle Eases AI Profit Fears by Saying Margins Can Be 35%
Oracle Corp. has provided its expectations for gross margins on large AI infrastructure projects, addressing Wall Street's concerns about the profitability of this new business segment. The company stated that these margins can reach up to 35%, a figure that may alleviate investor worries about the potential impact of AI investments on the company's overall profitability. Oracle's announcement comes amid a broader industry focus on the growth and monetization of AI technologies. The company's ability to maintain healthy margins in this domain is seen as a crucial factor in its ability to capitalize on the increasing demand for AI-powered solutions. The disclosure provides investors with more clarity on the financial viability of Oracle's AI initiatives, which are expected to play a significant role in the company's future growth strategy.
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