Oracle Loses $100M on Nvidia Chips, PayPal Launches Ads

Oracle finds itself at the center of today’s market attention following a report from The Information revealing the cloud computing giant lost nearly $100 million in Nvidia Blackwell chip rentals. The substantial financial hit represents a significant setback in Oracle’s artificial intelligence infrastructure ambitions and sent ripples through the semiconductor sector as investors assessed the implications for chip demand and cloud service profitability.

The reported loss on Nvidia’s advanced Blackwell chips underscores the volatile nature of AI infrastructure investments, where massive capital commitments don’t always translate to immediate returns. Oracle’s experience highlights the challenges cloud providers face in balancing the enormous costs of cutting-edge AI hardware against rental revenue potential. The market reaction to this news reflects growing investor scrutiny of how effectively major tech companies are managing their AI infrastructure investments amid intensifying competition in the cloud computing space.

While Oracle grappled with chip rental losses, PayPal made a strategic move to diversify its revenue streams with the launch of its new advertising manager platform. This expansion beyond the company’s core payment processing services represents a significant evolution in PayPal’s business model, leveraging its vast merchant network and customer data to create new monetization opportunities in the competitive digital advertising space.

The advertising platform launch signals PayPal’s ambition to capitalize on its extensive ecosystem of merchants and consumers, potentially creating a new growth engine alongside its traditional payment processing business. This diversification comes at a time when payment companies face increasing competition and margin pressure, making new revenue sources particularly valuable. The move positions PayPal to compete more directly with other platforms that have successfully monetized their user bases through advertising, though success will depend on execution and merchant adoption of the new service.

The most dramatic market move of the day came from Trilogy Metals, which surged by over 200% following the Trump administration’s announcement that it had acquired a 10% stake in the mineral company. This extraordinary price movement demonstrates the powerful impact government investment decisions can have on individual stocks, particularly in the resource sector where political support can significantly alter a company’s prospects.

The Trump administration’s investment in Trilogy Metals represents a notable development in government-industrial relations, signaling potential strategic interest in the company’s mineral assets. Such direct government stakes in publicly traded companies are relatively rare and typically generate substantial market attention, as evidenced by the massive trading volume and price appreciation in Trilogy Metals shares. The move raises questions about broader government investment strategies in critical minerals and how such interventions might reshape the competitive landscape in the mining sector.

This triple-digit percentage gain highlights how political developments can create immediate, massive market impacts, particularly for smaller companies where government backing can fundamentally alter investor perception of risk and growth potential. The Trilogy Metals surge serves as a reminder that beyond traditional financial metrics, political factors remain powerful drivers of market movements, especially in sectors deemed strategically important for national interests.