Nvidia CEO Jensen Huang Said Nvidia Compute Is 'Fungible, Durable and Highly Rentable' — Now Oracle CEO Stands Impressed as 4-Year Old GPUs Fetch 20% Premium

Oracle CEO Clay Magouyrk has expressed admiration for Nvidia CEO Jensen Huang's perspective on AI hardware's enduring value. During Oracle's Q1 2027 earnings call, Magouyrk noted that GPU renewal or resale was occurring at a 20% premium, with the majority of GPUs being at least four years old. He emphasized the long-term utility and increasing value of AI capacity being deployed.

Magouyrk also revealed that Oracle had delivered 850 megawatts of AI capacity, consisting of over 300,000 GPUs, since the previous quarter's end, which was nearly triple the fourth-quarter figure and accounted for 73% of the capacity delivered during the prior fiscal year. The company had also secured more than $30 billion in additional AI contracts without needing extra capital, while maintaining a high GPU utilization rate of 97.9%.