Debasis Mohapatra
Bengaluru, 19 December 2024
Global technology giant, Oracle is winning large deals in the space of training AI models of large firms including OpenAI, xAI, Nvidia and many others.
According to the company, faster pace of its infrastructure cloud coupled with affordable costing are helping the tech firm to win these deals.
“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models. Our major AI customers include OpenAI, xAI, Nvidia, Cohere, and most recently, Meta with their large scale Llama models. Oracle continues to win large AI training workloads because we’re faster and less expensive than the other infrastructure clouds,” Larry Ellison, Chairman and Chief Technology Officer of Oracle has said during its recent analyst call post its Q2 results announcement.
“The better capabilities of the new AI version of our database, Oracle 23ai, enables our customers to easily use their existing data in their existing databases to augment and specialize the training of industry-standard generative AI models like ChatGPT, Grok, and Llama,” he has said.
During the second quarter, total cloud services and license support was $10.8 billion, up 12%, driven by OCI, strategic cloud application, and autonomous database.
Infrastructure subscription revenues, which includes license support, were $6 billion, up 17%. Record level AI demand drove Oracle Cloud Infrastructure revenue up 52%, the company has said.
“Our infrastructure cloud services now have an annualized revenue of 9.7 billion. OCI consumption revenue was up 58% as demand continues to outstrip supply. Growth in the AI segment of our infrastructure business was extraordinary,” the company has said.
Oracle’s share price lost 7% in last one week to hover around $165.7 at NYSE.
