Top 4 Takeaways from Oracle’s Earnings Call

After Oracle (ORCL) reported fiscal fourth-quarter earnings topped estimates and announced big cloud infrastructure deals with Microsoft (MSFT), OpenAI and Alphabet’s (GOOGL) Google Cloud, company executives joined the call on Tuesday earnings call to discuss new partnerships, how artificial intelligence (AI) can power Oracle’s growth, and more.

Cloud Infrastructure Engage in Microsoft and OpenAI AI training

Oracle announced a partnership with Microsoft and ChatGPT developer OpenAI to extend Azure Al to Oracle Cloud Infrastructure (OCI) to provide additional capacity for OpenAl.

The company said it already has 11 databases on Azure sites and has more locations, and Microsoft will “come online soon.”

Oracle Chief Technology Officer Larry Ellison said the company is building a “very, very large data center” with “a lot of Nvidia chips” for training in artificial intelligence models, noting that large data centers are necessary for complex artificial intelligence training, especially in the role of models, the possibilities are expanding.

Ellison said that in addition to Microsoft and OpenAI, Oracle’s cloud infrastructure and data center customers include Nvidia (NVDA), Google and Elon Musk’s xAI.

Google combines cloud with Oracle

The company also announced a multi-cloud partnership with Google. OCI and Google Cloud network connections were available in 10 regions on Tuesday, Oracle CEO Safra Catz told investors.

Oracle Databases on Google Cloud will launch in September, providing customers with direct access to Oracle database services running on the OCI platform deployed on Google Cloud. Catz said the company will have 12 Oracle databases on Google Cloud sites this year.

Amazon’s ( AMZN ) AWS wasn’t among Oracle’s big cloud customers, but Ellison said the company “would like to do the same (as it does with Microsoft and Google) with AWS.”

The era of artificial intelligence driving incremental growth

Catz emphasized that Oracle expects continued revenue growth, driven by data center and cloud performance required by advanced artificial intelligence models.

Catz said it “expects continued strong cloud demand to drive even greater growth in Oracle’s sales and RPO and double-digit revenue growth this fiscal year,” adding that “each subsequent quarter should grow faster than the previous quarter, in as OCI increases capacity to meet demand.”

The CEO said that “the current momentum will continue as order volumes grow even faster than bookings.” She noted that cloud infrastructure services in fiscal 2025 will grow faster than in fiscal 2024.

Meeting customer needs through comprehensive services

Oracle said what sets it apart from its competitors is its ability to offer end-to-end data center services to customers.

“Regardless of the deployment model, (Oracle customers) don’t have to compromise,” Catz said, adding that “some of our competitors may offer some level of sovereignty or some level of disconnection, but they don’t actually have all the services. “

She said that “we’ve had this success regardless of whether we’re dealing with a disconnected grid or a sovereign grid. The customer always gets everything – all services, not just some services, and can implement them however they want.”

The CEO also emphasized that sovereignty “can be very critical” to the government and some customers, which could set the company apart as organizations look for sovereign solutions to keep their data safe.

Oracle shares were up about 9.4% at $135.55 in extended trading as of about 7:15 p.m. EST on Tuesday after the company’s earnings announcement.