Oracle stock soars as CEO says AI-fueled cloud revenue set to soar to $144 billion

[Xebec]

Larry Ellison and Elon Musk often speak about bold, huge things. As long as they achieve one or two successes people usually overlook what doesn’t work out.

There's a big difference between growing rapidly in a market with no competition (reusable rockets, BEVs) ; vs saying you're going from 5th to 1st place in a market with mature and well funded competition.

 

[Xebec]

I doubt it. I've met Safra Catz, and she might be the most impressive CEO that I've ever encountered. This is a person who can stay cool and add value with Larry Ellison as her boss (he's executive chairman) and chief technology officer. Imagine, the CEO reporting to the CTO. And in 2014 Ellison hired his tennis buddy Mark Hurd to be her co-CEO at Oracle, after Hurd got fired from HP for a sexual harassment tussle. After Hurd died in 2019, Catz has been the sole CEO. An amazing long-term performance, unrivaled by any situation I've ever heard about.

Does this forum have a "remind me in 3 years" feature?

 

[swka]

At the age of 81, he deserves the right to say whatever he wishes.

can this logic be applied to politicians

Larry Ellison and Elon Musk often speak about bold, huge things. As long as they achieve one or two successes people usually overlook what doesn’t work out.

isn't that always the case? many people forgot nVidia almost died a few times, and "stumbles" on GPU for AI, after they tried very hard to stay afloat, including exploring bitcoin mining chips. And now you listen to CEO talking about his vision for AI from day 1.

 

[hist78]

can this logic be applied to politicians

Several years ago, I had the chance to listen to a major newspaper’s advertising chief give a speech at an event. He asked the audience: For which type of advertisement does our newspaper always require full upfront payment, non-negotiable?

Option 1: Store closing sale

Option 2: Bankruptcy sale

Option 3: Political campaigns

Most of the audience, including me, guessed the answer was #2. But the correct answer was #3.

 

[bilau]

Does this forum have a "remind me in 3 years" feature?

I am with Xebec.

OpenAI and Oracle strike $300B cloud computing deal to power AI - SiliconANGLE

OpenAI and Oracle strike $300B cloud computing deal to power AI - SiliconANGLE

siliconangle.com

Oracle increased their backlog by 317B this quarter which Jibes with the OpenAI deal amount.

I have heard that in surfing tech waves, you sure as hell don't want to be the last one, but you also don't want to be the first one. We will see if OpenAI can really cut the big checks starting 2027.

 

[Xebec]

Stock price update, 5 months later:

 

[FIvr]

Reality check here -

"We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years," said CEO Safra Catz in a statement Tuesday."

Roughly speaking, if last year was ~ $10B ( * 1.77 = ~ $18B), the CEO is saying:

2024 = 1.0X
2025 = 1.77X
2026 = 3.2X
2027 = 7.3X
2028 = 11.4X
2029 = 14.4X

Oracle is claiming a >7X increase in 3 years and >14X increase in Cloud infrastructure revenue in 5 years?

This seems.. insanely aggressive?

When she was mouthing in the Trump White House AI honcho meeting, I wondered what was her credential. Sure enough, she got yanked as CEO laterally within days.

 

[blueone]

When she was mouthing in the Trump White House AI honcho meeting, I wondered what was her credential. Sure enough, she got yanked as CEO laterally within days.

Actually, Catz was appointed Executive Vice Chairman, and replaced by two co-CEOs, one with direct cloud experience and one with datacenter infrastructure experience. It looks like a logical transition to me. For some reason, Ellison likes a co-CEO structure. Since Ellison has his nose in anything he cares to stick it in (he owns about 40% of Oracle's outstanding shares), he's also CTO and Executive Chairman.