Oracle has inked a deal with Meta to allow the social media giant to use Oracle Cloud Infrastructure to train and deploy its Llama Large Language Models (LLM), according to TechRadar.
Oracle Chief Technology Officer Larry Ellison confirmed the deal.
“We just signed an agreement with Meta – so they can use Oracle’s cloud AI infrastructure – and we’re working with Oracle to develop AI agents based on Meta’s Llama models,” Ellison said.
He highlighted Oracle’s competitive advantage in artificial intelligence: “Oracle’s cloud infrastructure trains some of the world’s most important generative AI models because we are faster and cheaper than other clouds…Oracle-trained AI models and AI agents will improve the speed of scientific discovery, economic development and corporate growth worldwide. The scope of this opportunity is unimaginable.”
Oracle’s role in Meta’s AI expansion
Meta’s decision to partner with Oracle demonstrates the rapid growth of Oracle Cloud, driven by increasing demand for AI-driven computing power. Oracle CEO Safra Catz emphasized this during the company’s latest earnings call, which revealed record growth in the cloud infrastructure business.
Despite this pace, Oracle’s quarter-end financial results fell short of Wall Street expectations. Quarterly revenue rose 9% year-over-year to $14.06 billion, slightly below expectations of $14.1 billion. Adjusted earnings per share were $1.47, missing expectations of $1.48.
Cloud business drives revenue
Oracle’s cloud operations now account for about 77% of its total revenue. The segment saw a 12% year-over-year increase to $10.81 billion. Oracle Cloud Infrastructure (OCI) stood out with revenues exceeding 52% in the second quarter, significantly outperforming the competition in the hyperscale cloud market.
“Record AI demand drove Oracle Cloud Infrastructure revenue,” Catz explained, noting a 336% increase in GPU consumption over the three-month period.
Although Oracle’s cloud business is showing 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 contributed to a decline in Oracle’s share price, reflecting investor skepticism.
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See also: Microsoft sued in UK over cloud licensing practices
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