Oracle is making a big splash in the AI world, confirming a major new cloud computing deal with Meta and predicting a massive surge in its AI-related revenue. The news, announced at the company’s AI World conference, sent Oracle’s stock up 3%.
The database software giant said it expects to bring in a staggering $20 billion in AI-related revenue by 2030, a huge jump from the $2.4 billion it’s expecting this year. The company is seeing “immense demand” for its cloud infrastructure, and one of its new CEOs, Clay Magouyrk, revealed that Oracle signed a mind-boggling $65 billion in new cloud deals in just 30 days.
Magouyrk was quick to point out that this demand is coming from a range of customers, not just the AI giant OpenAI, which recently signed a massive deal with Oracle. “The reality is, we think OpenAI is a great customer, but we have many customers,” he said. He then confirmed that one of the new customers is Meta, the parent company of Facebook and Instagram.
The deal with Meta is a huge win for Oracle, which has been working hard to expand its cloud business and compete with giants like Amazon and Google. The partnership comes as all the big tech companies are spending billions on the infrastructure needed to power their AI ambitions.
Oracle is also confident that this new business will be profitable, with a company executive saying they only pursue deals where they have a “clear line of sight to attractive market margins.”
