Riding the AI wave: Oracle's Cloud Infrastructure Business on the Rise

Thursday, 4 April 2024, 09:45

Oracle stock surged by 12.5% in March driven by soaring demand for cloud infrastructure, particularly in the AI computing segment. Despite sluggish growth in other areas, the company's strategic focus on AI workloads is drawing investor excitement. Oracle's cloud infrastructure revenue grew substantially, outpacing its software business growth significantly, positioning the company for potential hypergrowth in the future.
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Riding the AI wave: Oracle's Cloud Infrastructure Business on the Rise

Riding the AI Wave

Oracle has positioned its cloud infrastructure business to go after artificial intelligence workloads. Demand for AI computing capacity is soaring, driven by both established companies and an ever-increasing number of AI start-ups. Oracle's cloud infrastructure revenue shot up 49% year over year in the third quarter to $1.8 billion, growing more than three times as quickly as the company's cloud software business.

Slow Growth Elsewhere

Oracle's progress winning AI workloads and growing its cloud infrastructure business impressed investors in March. However, sluggish growth was observed in other areas such as cloud license revenue, hardware revenue, and services revenue. While some segments like cloud application software revenue saw growth, total revenue growth remained modest compared to other cloud giants.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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