Oracle has forged a partnership with Meta, allowing the social media giant to harness Oracle Cloud Infrastructure for training and deploying its LLaMA massive language models (LLMs).
Oracle’s Chief Technology and Innovation Officer, Larry Ellison, officially confirmed the settlement.
Oracle’s CEO Larry Ellison explained, “We’ve entered into a settlement agreement with Meta, allowing them to utilize our AI Cloud Infrastructure and collaborate with us in developing AI brokers founded on Meta’s Llama models.”
Oracle’s cutting-edge advantage in AI was underscored: “Oracle Cloud Infrastructure accelerates training of numerous globally significant generative AI models due to our superior speed and cost-effectiveness compared to other clouds… By leveraging Oracle-trained AI models and AI Brokers, we will amplify scientific breakthroughs, fuel economic growth, and drive business innovation worldwide.” The vastness of possibility is almost incomprehensible.
As Meta’s AI ambitions continue to unfold, Oracle finds itself at a crossroads. Will its longstanding partnership with Meta remain a cornerstone of their joint efforts, or will the tech giant seek alternative routes?
The partnership between Meta and Oracle highlights the rapid progress of Oracle Cloud, driven by surging interest in AI-powered computing capabilities. On Oracle’s latest earnings call, CEO Safra Catz highlighted the company’s remarkable success in its cloud infrastructure business, boasting record-breaking growth.
Despite a positive momentum, Oracle’s quarterly financial results failed to meet Wall Street’s expectations. Quarterly income surged 9% year-over-year to a record $14.06 billion, just shy of expectations at $14.1 billion. Adjusted earnings per share came in at $1.47, slightly missing expectations of $1.48.
Cloud enterprise drives income
Oracle’s cloud business accounts for approximately 77% of its overall revenue. The company posted a 12% year-over-year improvement, achieving revenues of $10.81 billion. Oracle Cloud Infrastructure saw a notable surge in income, with revenue rising by 52% during the second quarter and outpacing its competitors in the hyperscale cloud market.
“As Oracle Cloud Infrastructure revenue surged, Mark Catz attributed the growth to file-level AI demands, highlighting a remarkable 336% increase in GPU usage over the quarter.”
While Oracle’s cloud business has shown robust growth, the overall prognosis remains uncertain. The corporation’s latest quarterly forecast anticipates a modest income growth of between 7% and 9%, falling short of analysts’ projections once again. The decline in Oracle’s inventory valuation reflects investors’ growing unease.
