Reasons Oracle Excels in Cloud Technology

Oracle Didn’t Beat Earnings Because of Software. It beat because it became the cloud vendor for AI builders who couldn't get NVIDIA chips anywhere else! For years, Oracle was the cloud underdog. But this quarter? Oracle flipped the script. 📈 Q4 Earnings Highlights:  • Cloud infrastructure revenue up 42% YoY (faster growth than AWS or Azure)  • Forecasting 70% cloud growth next fiscal year (pretty amazing for a 4th place cloud provider)  • $138B in signed cloud deals yet to deliver (RPO) — up from $97B just six months ago So what changed? It’s not SaaS. It’s GPUs. While the cloud giants battled over workloads, Oracle quietly preordered and reserved NVIDIA’s best AI chips—then built bare-metal GPU access, which is nearly impossible for companies to get from AWS or Azure. Now, when AI startups need serious compute fast, they’re going to... Oracle. Who’s renting Oracle’s power?  • xAI (Elon Musk)  • Meta  • Mistral, Cohere, MosaicML, Twelve Labs, Adept  • …and probably many more under NDA. These aren’t nostalgic Oracle fans. They’re chasing the fastest path to AI horsepower—and Oracle actually has it. 4th place in cloud? Maybe. But in AI infrastructure, Oracle’s suddenly the one to beat.

Oracle just pulled off the most audacious infrastructure play in tech history. Here's the controversial truth: • The $8B moonshot: Oracle went from $1-2B annual capex to $8B in 2022 while SAP stayed flat at $2B. • SAP chose safety, Oracle chose sovereignty: When cloud got expensive, SAP partnered with AWS/Azure and gave up control. Oracle built end-to-end infrastructure and now owns the entire customer relationship. • Operation Stargate was earned, not lucky: Oracle's 2-layer networking architecture delivers 61% lower costs than competitors. When OpenAI needed 100k+ GPUs, Oracle had the technical chops to deliver at scale. • ByteDance made them the silent giant: While everyone obsessed over ChatGPT, Oracle quietly became TikTok's GPU supplier, building the second largest AI hub in Malaysia • The math is beautiful: $130B+ in contracted revenue pipeline vs $28B invested over 11 years. • They're cheaper where it counts: Oracle undercuts hyperscalers on price and beats neoclouds on reliability. When you control the full stack, you control the economics. Bottom line: Oracle turned their "disadvantage" of being late to #cloud into the ultimate advantage. Source: SemiAnalysis

Oracle isn’t chasing cloud dominance, it’s chasing AI infrastructure control. And it just made the boldest capacity bet in hyperscale history... While most eyes are on models, Oracle is quietly building the physical layer powering the AI era. This quarter made it clear: Oracle is no longer a #SaaS company with a cloud division. It’s becoming a global AI infrastructure utility. Here are the 10 most important takeaways from Oracle’s Q4 FY25 earnings: 1. Oracle is securing 5GW of U.S. data center capacity, just for OpenAI. By the end of 2026, Oracle aims to deploy 5GW of infrastructure to support OpenAI training workloads. That’s just for one customer and more than some hyperscalers deploy globally. 2. “We’ll outbuild everyone.” — Larry Ellison Ellison told investors Oracle will build more cloud data centers than all its competitors combined. With over $25B in FY26 CapEx planned, Oracle is planning on executing on that vision. 3. OCI is now Oracle’s fastest-growing business. Cloud infrastructure revenue rose 52% YoY to $3.0B. Consumption-based revenue grew 62%. Oracle is no longer catching up, it’s gaining ground with hyperscaler speed. 4. AI demand is exploding inside Oracle’s stack. GPU consumption rose 244% YoY. Through the Stargate initiative, Oracle is scaling to 75,000+ GPUs across six hyperscale buildings in #Texas. 5. The demand is already signed. Oracle’s backlog (RPO) hit $138B, up 41% YoY. Over $48B in new deals were signed in Q4 alone. This is not forecast, it’s committed revenue. 6. CapEx is scaling like a national grid operator. Oracle spent $21.2B in FY25. It’s guiding to exceed $25B in FY26 with the majority funding revenue-generating AI data center buildouts globally. 7. Multi-cloud strategy is delivering real wins. Database revenue from Microsoft Azure, Amazon Web Services (AWS), and Google Cloud rose 115% YoY showing that Oracle’s open, cross-cloud approach is working. 8. Oracle’s infrastructure growth is outpacing the hyperscalers. OCI’s 52% growth in IaaS tops Azure (31%) and AWS (17%). The scale is different but the direction is undeniable. 9. Cloud is now 42% of Oracle’s total revenue. Cloud infrastructure and services now anchor Oracle’s business model and its long-term strategy. 10. FY26 guidance reflects massive upside. Oracle raised its revenue target to $67B+ and projects over 70% IaaS growth next year. With signed contracts and active construction, the outlook is grounded in execution, not optimism. Oracle is no longer a software company with cloud ambitions. It’s becoming the infrastructure layer AI will run on. And the world is starting to notice. #datacenters