Oracle boosts generative AI capabilities as cloud competition heats up | Wilnesh News

US cloud infrastructure provider Oracle As competition in the cloud intensifies and more companies venture into the AI ​​space, AI is increasing its generative AI capabilities.

The launch of the chatbot ChatGPT in November 2022 has fueled the artificial intelligence craze, driving increased demand for cloud computing services and data centers, as artificial intelligence model training requires large amounts of data, and the cloud provides access to large data sets.

Oracle has been introducing generative AI capabilities into its cloud infrastructure and applications to complement the traditional AI already embedded within them.

Rondy Ng, Oracle’s executive vice president of application development, told CNBC: “Classic artificial intelligence is very good at detecting patterns or predicting numbers…but you can’t use large language models to predict numbers.”

“So we combine the ability to predict numbers with the ability to interpret words. So the two combined become very powerful, and you need both. The numerical prediction part has matured very well over the past many years. As a product Part of that, we continue to evolve and it’s not going to stop, generative artificial intelligence is basically a hot topic right now.

March, Oracle announces additional generative AI capabilities Embed applications in finance, supply chain, human resources, sales, marketing and service. Generative AI capabilities can perform tasks such as generating financial reports and drafting job ads, increasing productivity and reducing business costs, Oracle said.

This is after the company declare Implementing generative artificial intelligence across its technology stack in January.

Dan Ives, managing director at Wedbush Securities, said in email comments to CNBC on Wednesday: “We believe that Oracle is achieving a growth renaissance through its artificial intelligence strategy. It is fully capable of becoming a major beneficiary of the artificial intelligence revolution.

“Oracle’s ownership of the data and installed base gives Ellison a significant advantage in monetizing the AI ​​software layer,” Ives said, referring to Oracle Chairman and Chief Technology Officer Larry Ellison.

While companies were talking about the generative AI story last year, technology providers had to stay one step ahead of the cycle, Research firm Gartner said in a report April 17th. “They are bringing GenAI capabilities into existing products and services, as well as use cases identified by enterprise customers.”

JPMorgan Chase said that generative artificial intelligence and artificial intelligence can drive the increase and growth of IT spending in the entire software field. “Many software vendors, including Oracle, have cited the benefits of continued corporate investment in artificial intelligence technology,” JPMorgan analysts said in a March 12 report.

The U.S. investment bank said that if Oracle can capture a larger-than-expected share of spending on artificial intelligence, the company’s revenue could increase and have a positive impact on its stock price. According to FactSet data, Oracle’s stock price has surged 23.74% in the past 12 months.

“Generative AI services are basically a huge advantage compared to our competitors. Competitors need to work with different companies and cloud providers to provide infrastructure and such services. We actually integrate everything into One integration stacks up and then we use it,” Wu told CNBC.

Oracle has fallen behind its rivals Amazon, Microsoft and Google According to statistics, cloud infrastructure services market share collaborative research groupThe report ranks Oracle as the sixth-largest services provider in the world, tied with IBM.

While Oracle got a late start in cloud infrastructure, the AI ​​boom has increased demand for the company’s AI technology.Allison in 2018 Dismiss cloud computing as “complete gibberish.”

Ron Westfall said: “Oracle has really followed the lead of the hyperscalers. (I think) for the rest of 2024 and the foreseeable future, this is not a competitive issue. We are at the beginning of this whole new generative AI journey. ” Director of Research, Futurum Group.

Chief Executive Safra Catz said in March that the company added several “large new cloud infrastructure” contracts during the fiscal third quarter. Oracle said cloud revenue increased 25% year-on-year to $5.1 billion.

Deutsche Bank analysts said on March 12: “We are interested in management’s comments indicating that Oracle’s cloud infrastructure backlog is large and that artificial intelligence has not yet really driven revenue, which is expected to be more in FY25. significance.

Ellison said in March that the Salt Lake City data center Oracle is building can accommodate eight Boeing 747 aircraft placed end-to-end.

When talking about future market opportunities, Allison said he sees an increasing number of national and state government applications running on platforms such as Oracle Cloud Infrastructure, adding that the company is working with a number of countries on sovereign regions. Negotiate.

“Another area where (Oracle) is leading, even though everyone is scrambling to do so, is in delivering sovereign AI clouds, clouds that operate exclusively within one country,” Westfall said.

“More and more countries are saying, when it comes to the next generation of artificial intelligence, we want all this information, all this data, to be stored domestically.”

In April, Oracle said it would Investment of over US$8 billion Japan will develop cloud computing and artificial intelligence infrastructure in the next 10 years.

Oracle and Nvidia announced in March that they would Collaboration to deliver sovereign artificial intelligence solutions To customers all over the world.