Oracle has entered into with Meta, enabling the social media giant to leverage Oracle Cloud Infrastructure for training and deploying its Llama large language models (LLMs), as reported by TechRadar.
The agreement was confirmed by Oracle’s Chief Technology Officer, Larry Ellison.
“We just signed an agreement with Meta – for them to use Oracle’s AI Cloud Infrastructure – and collaborate with Oracle on the development of AI Agents based on Meta’s Llama models,” Ellison stated.
He highlighted Oracle’s competitive edge in the AI space: “Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds… Oracle-trained AI models and AI Agents will improve the rate of scientific discovery, economic development, and corporate growth throughout the world. The scale of the opportunity is unimaginable.”
Oracle’s role in Meta’s AI expansion
Meta’s choice to collaborate with Oracle shows Oracle Cloud’s rapid growth, which is driven by rising demand for AI-driven computing power. Oracle CEO Safra Catz emphasised this at the company’s most recent earnings announcement, which revealed record-breaking growth in its cloud infrastructure business.
Despite the momentum, Oracle’s quarter-end financial results fell short of Wall Street expectations. Quarterly revenue rose by 9% year on year to $14.06 billion, slightly below the expected, at $14.1 billion. Adjusted earnings per share were $1.47, below the expectation of $1.48.
Cloud business drives revenue
Oracle’s cloud operations now make about 77% of its total revenue. The segment posted a 12% year-over-year increase, reaching $10.81 billion. Oracle Cloud Infrastructure (OCI) stood out, with revenue passing 52% in the second quarter, greatly surpassing competitors in the hyperscale cloud market.
“Record-level AI demand drove Oracle Cloud Infrastructure revenue,” Catz explained, noting a 336% increase in GPU consumption during the three-month period.
While Oracle’s cloud business demonstrates strong growth, the overall outlook remains uncertain. The company’s forecast for the current quarter predicts revenue growth of 7% to 9%, again falling short of analysts’ expectations. This has contributed to a dip in Oracle’s stock price, reflecting investor scepticism.
(Photo by Unsplash)
See also: Microsoft sued in UK over cloud licensing practices
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