Oracle boosts its AI cloud services struggling to keep up with Microsoft and Amazon

Is Oracle catching the AI cloud services wave?

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Oracle boosts AI cloud services investments

It’s not a secret anymore that Microsoft is leading the next wave of AI cloud services and their latest investments in this field paid off. Oracle is trying to ride this wave as well, and they’ve been busy boosting their cloud services with some pretty advanced generative AI capabilities.

This isn’t just a small upgrade; we’re talking about a significant leap that’s pushing their cloud revenue up by a whopping 25% to $5.1 billion.

In fact, according to latest Gartner report, Gen AI is the main focus of the big cloud services companies:

We are seeing a cycle of story, plan, execution when it comes to GenAI. In 2023, enterprises were telling the story of GenAI and in 2024 we are seeing most of them planning for eventual execution in 2025. Technology providers are required to be a step ahead of this cycle and are already in the execution phase. They are bringing GenAI capabilities to existing products and services, as well as to use cases being identified by their enterprise clients. 

John-David Lovelock, VP Analyst at Gartner

Will Oracle manage to keep up with the AI race?

Now, why is all this AI talk important? Well, Oracle is integrating generative AI into its applications, which is a game-changer for productivity and cost reduction. Imagine having AI that can not only predict outcomes but also generate human-like responses and solutions. That’s the kind of synergy Oracle is aiming for by combining predictive analytics with generative AI. And guess what? They’re not stopping there. According to CNBC, in March, Oracle expanded its AI features across various applications, following an announcement in January about implementing generative AI across its technology stack.

But here’s the kicker: Oracle’s cloud infrastructure backlog is massive, and AI is expected to drive even more revenue in the future. They’re also focusing on sovereign AI cloud solutions, which means they’re building a data center in Salt Lake City and negotiating with countries to meet specific data storage requirements. This is a big move towards providing more secure and localized AI services.

Oracle’s generative AI push is all about staying competitive and even more. With their data and installed base, they’re in a strong position to monetize AI in ways their competitors can’t. And with the AI boom driving demand for cloud computing services, Oracle’s strategic investments in AI are set to pay off big time.

So, what does all this mean for us? Well, as Oracle and others ramp up their AI capabilities, we can expect to see more innovative services and solutions that can transform how businesses operate. Whether it’s improving productivity, reducing costs, or creating more personalized customer experiences, AI is the future, and it’s happening now.

What do you think about the increasing investments in AI cloud services? Let’s talk about it in the comments section below.

More about the topics: AI, business, cloud software, Oracle