Oracle disclosed that the US cloud infrastructure provider has boosted its generative artificial intelligence (AI) proficiencies as cloud competition escalates and more firms enter AI.
The AI was buoyant when OpenAI launched ChatGPT in November 2022. This launched a strong demand for cloud computing services and data centers, as large amounts of data are needed to train the model as the cloud provides access to vast datasets.
Oracle has been disclosing gen-AI capabilities in its cloud infrastructure and applications to complement classic technology.
According to Rondy Ng, the Texas-based company’s executive vice president of applications development, the traditional AI is exceptional in detecting patterns or predicting numbers. However, users cannot utilize large language models (LLM) to predict numbers.
Last month, Oracle disclosed additional gen-AI features across finance, supply chain, human resources, sales, marketing, and service applications.
The company said the tool can execute tasks like generating financial reports and drafting job ads, boosting productivity and lessening business costs.
Furthermore, this succeeded following the firm’s announcement of gen-AI implementation across its technology stack in January.
An analyst said the cloud firm is seeing a growth revival with its tech approach and is well-positioned to benefit significantly from the technology insurgence.
Meanwhile, according to the US investment bank, the company might see a surge in revenue and a positive impact on its shares if it leads to a better-than-expected share of the spending into AI.
Cloud Infrastructure Market Solid Rivalry, Oracle Straggles
According to reports, Oracle has fallen behind rivals like Amazon, Microsoft, and Google in cloud infrastructure service market share, positioning it as the sixth-biggest service provider.
Meanwhile, the company was late to cloud infrastructure as AI success increased demand for the firm’s AI technology.
CEO Safra Catz said last month that Oracle had added various large fresh cloud infrastructure contracts in the fiscal third quarter. According to the firm’s data, its cloud revenue surged by 25.00% year-over-year to $5.10 billion.
In April, the cloud company announced it would invest about $8.00 billion in Japan over the next 10 years to boost cloud computing and AI infrastructure.
Moreover, Oracle and Nvidia said they would collaborate in March to deliver sovereign AI solutions to customers worldwide.
