Oracle Pumps Up Cloud Spending By 100 As Ai-Driven Revenue Soars

Oracle’s Cloud Computing Plans Take Center Stage as Capital Expenditure Doubles for 2025

The company has announced plans to double its capital expenditure for 2025, with CFO Safra Katz revealing that the firm expects to see a significant increase in AI-driven revenue. This comes on the heels of record-breaking earnings, with Oracle Cloud Infrastructure revenue reaching $25 billion for the fiscal year.

Katz attributed the surge in revenue to “record level AI demand,” which drove a 52% increase in Oracle Cloud Infrastructure revenue. This growth is further fueled by the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies across various industries.

Despite this impressive growth, hardware expenses remain relatively low, accounting for just 1% of total revenues. Katz emphasized that Oracle’s approach to cloud computing allows it to optimize capital expenditure, citing its modular architecture as a key advantage. Unlike competitors, which often require large upfront investments, Oracle can start with smaller footprints and expand as needed.

This strategy enables the company to match its capital expenditure with revenue growth, making it more efficient and cost-effective. Oracle’s plans for 2025 include introducing a new “OCI Dedicated Region25” that will offer 150+ AI and cloud services at the edge or in a co-lo from just three racks. This offering is expected to be available within weeks and can rapidly expand as customers need it.

Analysts have taken notice, speculating that Oracle’s partnership with AWS, Google, and Azure could lead to significant revenue gains. CTO Larry Ellison stated that the proposition for offering Oracle’s ubiquitous Database in their clouds is expected to exceed $100 million in its first year.

As the cloud computing market continues to evolve, Oracle’s commitment to innovation and flexibility is set to play a major role. With its doubling of capital expenditure for 2025, the company is poised to maintain its position as a leader in the industry, driving growth and efficiency through its cloud infrastructure.