Microsoft has partnered with Oracle to utilize its cloud for running workloads for OpenAI.
This collaboration means that Microsoft will expand the Azure AI platform to Oracle Cloud Infrastructure (OCI) to provide additional capacity for OpenAI.
OpenAI’s CEO, Sam Altman, expressed that “OCI will extend Azure’s platform and enable OpenAI to continue to scale,” indicating that Azure may not be able to keep up with OpenAI’s demand for GPUs.
During Oracle’s Q4 2024 earnings call, Larry Ellison, the chair and CTO, announced that a large data center is being built with Microsoft, primarily for training purposes with Nvidia chips and liquid cooling.
Additionally, Oracle has partnered with Google to offer the Cross-Cloud Interconnect service in 11 OCI regions, with Oracle Database@Google Cloud set to launch later in 2024.
In Q4 2024, Oracle reported $14.3 billion in revenue, with cloud services and license support revenues increasing by nine percent to $10.2 billion. CEO Safra Ada Catz highlighted the demand for cloud services, including training large language models and record sales for various Oracle products.
Catz emphasized the shift to multi-year cloud revenue commitments over one-time license revenue, with Oracle having $98 billion of Remaining Performance Obligations (RPO) on its books.
The quarterly results were described as an “incredible quarter” by Catz, with full-year revenue reaching $53 billion and an expectation of accelerated growth, particularly in infrastructure services.
Looking ahead, Q1 is projected to have six to eight percent year-over-year revenue growth.
Ellison believes there is significant growth potential for Oracle in the AI field, emphasizing the need for larger data centers to stay competitive in the AI race.
The positive results led to an increase in Oracle’s share price from around $123 before the announcement to about $135 in after-hours trading.
