"Oracle ( Nasdaq: ORCL) reports earnings after the close with perhaps the strongest AI narrative in enterprise software. The company has become a central infrastructure provider for the world's largest AI model builders, with Larry Ellison and Safra Catz positioning Oracle as both a hyperscale cloud challenger and the de facto enterprise data backbone for the emerging AI inferencing economy."
"Last quarter's results highlighted the step-change in demand: cloud RPO surged to $455 billion, up 359% year over year, signaling years of locked-in capacity growth and validating Oracle's strategy to embed OCI across hyperscalers and enterprise data centers."
"Ellison stated directly that inferencing will be "much, much larger than the AI training market" and that Oracle is uniquely positioned due to its role as the "world's largest custodian of high-value private enterprise data." The introduction of the Oracle AI Database, enabling vectorization of all enterprise data, may be a major multi-year catalyst if adoption ramps quickly."
Oracle has positioned itself as a central infrastructure provider for large AI model builders and a hyperscale cloud challenger. Cloud RPO reached $455 billion, up 359% year over year, indicating years of locked-in capacity and sustained demand. Cloud infrastructure revenue and OCI consumption rose sharply, driving near-term growth. Management expects inferencing to far exceed training and highlights Oracle's custody of high-value enterprise data. The Oracle AI Database enables vectorization of enterprise data and could accelerate multi-year adoption. Multi-cloud database revenue and embedded regions have expanded rapidly, and analysts expect double-digit sales growth and improving operating leverage.
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