Oracle also announced a new deal to make its namesake database available on Google’s cloud infrastructure.
Oracle reported better-than-expected results and announced agreements with its technology rivals, giving a boost to the president’s effort Larry Ellison to redefine the software company as a major competitor in the cloud computing and artificial intelligence business.
The company, known for its database software, is focusing on expanding its cloud infrastructure unit, which rents computing power and storage, to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. Although this division produces a small portion of total sales, investors see it as Oracle’s main bet for future growth.
Thus, Oracle shares soared 12.5% before the market opened in New York. If gains hold, shares are poised to hit their highest level on record. In the last two quarters, “Oracle signed the largest sales contracts in our history, driven by enormous demand to train AI big language models on Oracle CloudCEO Safra Catz said Tuesday in a statement.
Revenue growth will increase by double digits in the current fiscal year ending in May 2025, driven by strong demand for AI workloads, Catz said. Growth should accelerate throughout the year as “cloud unit capacity begins to catch up with demand,” she added.
Oracle also announced a new deal to make its namesake database available on Google’s cloud infrastructure. A similar deal with Microsoft, which was announced in late 2023, “will drive the growth of our cloud database,” Ellison said in a separate statement.
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OpenAI, which has received billions in funding from Microsoft, will use Austin-based Oracle’s cloud infrastructure for “additional capacity,” the companies said in a statement.. Oracle Cloud has developed a reputation for success with generative AI startups: the company touted clients like Reka, MosaicML, and Elon Musk’s xAI.
Artificial intelligence technology needs enormous computing power to function. “The world’s largest cloud companies and the world’s most successful and prominent AI companies choose to use Oracle Cloud services and data centers,” Ellison said on a conference call after the company released its Q4 results. fiscal quarter.
Shares rose to a high of $135.28 in pre-market trading on Wednesday, dafter closing at US$123.88 in New York. Shares are up nearly 18% this year.
Source: Ambito
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