Oracle shares are up 34% since January, well outpacing the Nasdaq’s 14% rise and those of bigger competitors Microsoft, Amazon.com and Google.
It is a surprising revitalization for a company many in the tech industry had dismissed as a dinosaur of a bygone, precloud era. Oracle appears to be successfully making a case to investors that it has become a strong fourth-place player in a cloud market surging thanks to AI. Its lateness to the game may have played to its advantage, as a number of its 162 data centers were built in recent years and are designed for the development of AI models, known as training.
In addition, Oracle isn’t developing its own large AI models that compete with potential clients. The company is considered such a neutral and unthreatening player that it now has partnerships with Microsoft, Google and Amazon, all of which let Oracle’s databases run in their clouds. Microsoft is also running its Bing AI chatbot on Oracle’s servers.
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