Meta has recently partnered with Oracle to utilize Oracle Cloud Infrastructure for the training and deployment of its Llama large language models (LLMs), according to a report by TechRadar.
This collaboration was officially confirmed by Larry Ellison, Oracle’s Chief Technology Officer.
Ellison announced, “We have just finalized an agreement with Meta for them to leverage Oracle’s AI Cloud Infrastructure and work together with Oracle on enhancing AI Agents using Meta’s Llama models.”
He emphasized Oracle’s competitive advantage in the AI field, stating, “Oracle Cloud Infrastructure is the preferred choice for training many of the world’s leading generative AI models due to our speed and cost-effectiveness compared to other cloud providers. The utilization of Oracle-trained AI models and AI Agents will drive advancements in scientific research, economic progress, and business expansion globally. The potential impact is truly remarkable.”
Oracle’s Contribution to Meta’s AI Growth
Meta’s decision to collaborate with Oracle underscores the rapid expansion of Oracle Cloud driven by the increasing demand for AI-powered computational capabilities. Oracle CEO Safra Catz highlighted this during the company’s recent earnings report, which showcased a significant surge in its cloud infrastructure business.
Despite this positive momentum, Oracle’s financial results for the quarter fell slightly below Wall Street’s expectations. The quarterly revenue increased by 9% year-over-year to $14.06 billion, slightly missing the anticipated $14.1 billion mark. The adjusted earnings per share were $1.47, lower than the projected $1.48.
Cloud Business Fuels Revenue Growth
Oracle’s cloud operations now contribute approximately 77% of its total revenue, with a 12% year-over-year growth reaching $10.81 billion. Oracle Cloud Infrastructure (OCI) notably stood out, with revenue surging by over 52% in the second quarter, surpassing competitors in the hyperscale cloud market.
“Unprecedented demand for AI services propelled Oracle Cloud Infrastructure revenue,” Catz noted, highlighting a remarkable 336% spike in GPU utilization within the three-month period.
While Oracle’s cloud business demonstrates robust growth, the overall outlook remains uncertain. The company’s forecast for the current quarter anticipates revenue growth of 7% to 9%, falling short of analysts’ predictions. This has led to a decline in Oracle’s stock value, reflecting investor hesitancy.
(Image by Unsplash)
Related: Microsoft Faces Legal Action in the UK Over Cloud Licensing Practices
Interested in delving deeper into cybersecurity and cloud technologies with leading experts? Explore the Cyber Security & Cloud Expo happening in Amsterdam, California, and London. Discover more upcoming enterprise tech events and webinars powered by TechForge here.
