Recently, Oracle Corporation announced in its Q2 FY2025 financial report that the company's total revenue increased by 9% year-over-year, reaching $14.1 billion. Among this, cloud service revenue amounted to $5.9 billion, showing a year-over-year growth of %. This increase is closely related to the surge in global demand for artificial intelligence (AI).
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During the earnings call, Oracle's Chief Technology Officer Larry Ellison revealed that Oracle has signed an agreement with Meta to utilize Meta's AI cloud infrastructure and collaborate on developing AI agents based on the Meta Llama model. This indicates that Oracle's strategy in the AI field is continuously deepening.
Oracle's CEO Safra Catz pointed out, "Record AI demand drove a 52% increase in Oracle's cloud infrastructure revenue in the second quarter, a growth rate that far exceeds all of our hyperscale cloud infrastructure competitors." She stated that cloud revenue is expected to exceed $25 billion this year.
In terms of AI supercomputers, Catz mentioned that Oracle has delivered the world's largest and fastest AI supercomputer, capable of scaling to 65,000 NVIDIA H200 GPUs. In the second quarter, GPU usage increased by 336%, reflecting the rapid growth of AI-related workloads.
Despite Oracle's achievements in AI cloud services, the company's cloud revenue scale still appears insufficient compared to industry giants. Amazon Web Services (AWS) reported revenue of $27.5 billion last quarter, a 19% year-over-year increase; Microsoft's Intelligent Cloud revenue was $24.1 billion, up 20%; and Google Cloud revenue reached $11.4 billion, growing by 35%.
Due to intense market competition, Oracle's stock price fell by 9% on Tuesday. Ellison noted, "Oracle's cloud infrastructure has trained many important generative AI models in the world because we are faster and cheaper." He also emphasized Oracle's extensive applications in AI capabilities, including automated drug design, fraud detection, and analyzing satellite images to enhance agricultural output.
Additionally, Oracle announced that it has officially entered the multi-cloud era. Earlier this year, Oracle established partnerships with Microsoft Azure and Google Cloud, and collaborated with AWS to launch the Oracle Database@AWS service. This service will allow customers to use Oracle's autonomous database and Exadata database services in AWS data centers.
Ellison stated, "We have just begun our multi-cloud journey, with revenue expected to exceed $100 million in the first year." He further explained that this will become a multi-billion dollar business, combining AWS, Google, Azure, and various cloud customer services.
In response to strong demand from large clients, including major banks and telecom companies, Oracle is building nearly a dozen data centers to meet the growing market needs.
Key Highlights:
🌟 Oracle collaborates with Meta to utilize AI cloud infrastructure and develop AI agents based on the Llama model.
📈 Cloud service revenue grew by 24% year-over-year in Q2, with total revenue expected to exceed $25 billion for the year.
⚡ Oracle has entered the multi-cloud era, strengthening partnerships with AWS, Microsoft, and Google.