margin

Gross margin is

$\frac{\text{revenue}-\text{cogs}}{\text{revenue}}$ where COGS is the cost of goods sold - how much it costs the supplier to supply whatever is being sold.

GPUs as a Service

GPUaaS providers take very slim margins.

Provider	Gross Margin	Notes
CoreWeave	19.0%	Three months ending in June 2025
Oracle	13.9%	Three months ending in August 2026

CoreWeave¹ does not include the actual GPUs and datacenter (“Technology and infrastructure”) in their COGS, so they report a much higher gross margin than they really have.

Oracle Cloud² had $900Mrevenueon$775M of infrastructure. This was alleged by The Information, so it is not a definitive report.

Datacenter infrastructure

Core Scientific reported a 9% gross margin on its “HPC hosting” business.³ Core Scientific passes the cost of electricity through to its customers at zero margin, meaning this 9% reflects the profit they make on top of their COGS of leasing and operating the datacenter.

Footnotes

1. Document ↩

2. Internal documents show Oracle’s average profit margin for AI cloud deals was 16% - report - DCD ↩

3. Core Scientific Announces Fiscal Fourth Quarter and Full Fiscal Year 2024 Results :: Core Scientific, Inc. (CORZ) ↩