On 10 September Prophecy (NYSE: ORCL) Stock exploded 36% in response to a major increase in customer orders for Oracle’s cloud services.
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Oracle, Oracle Cloud infrastructure (OCI) segment in the last financial year (Mali 2025 financial year (Mali 2026), 2027 fiscal in the financial year, Fiscal 2027, Fiscal 2020 $ Fiscal $ 2028 $ 18 billion to $ 18 billion.
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For context, Amazon Web Services (AWS) produced over $ 60 billion in net sales in the first half of 2025 – therefore, the annual working rate of $ 120 billion. MicrosoftMali completed the year 2025, smart cloud income reported $ 106 billion. And AlphabetGoogle Cloud earned 26 billion dollars in the first half of 2025. This means that OCI will exceed the current dimension of Google Cloud in three years, the existing Microsoft Azure size in four years, and the AWS size in five years.
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Here Oracle wins cloud contracts from leadership artificial intelligence (AI) companies like Openai and why the company can be the best cloud for AI in the next five years.
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Image Source: Getty Images.
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The pushing of Oracle to the cloud infrastructure is the undisputed most courageous bet in the history of the company. Oracle does not cut the corners; It brings dozens of data centers in just a few years. 34 Multicloud has established data center and there should be 37 more online in less than a year.
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These multicoud data centers are unique because they allow an organization to use two or more cloud providers such as AWS to use service or workloads, Microsoft AzureGoogle Cloud and OCI. All these clouds can work with Oracle database. The idea is to allow customers to choose the best cloud service for each task.
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All of AWS, Azure and Google Cloud have many Bloud strategies, but the big difference is that Oracle has placed local versions of the infrastructure (Oracle Autonomous database and Exadata Database Service to improve and reduce delay (Oracle Autonomous Database). Among the examples, Oracle Database@AWS, Oracle Database@Azure and Oracle Database@Google Cloud. “Great Three” is about managing workloads instead of naturally integrating.
As a challenging alternative to Big Three, which is matched by Oracle’s ultra -modern data centers, OCI’s accumulation put Oracle on the last edge of the workflow. According to Oracle, OCI can save 50% better price-performance and 3.5 times time for high-performance cloud computing workflows compared to previous generation information processes.
While Oracle designs its cloud from scratch especially for AI, AWS, Microsoft Azure and Google Cloud, basic calculation and storage, database and analytical, network formation, etc. giants.
Nevertheless, Oracle reaches the milestones that are impossible to ignore-leaving the foundation of Oracle as a cloud for AI. It increased from the last quarter to 355 billion dollars by increasing 359% of the contract accumulation. Reports show that Oracle has made a $ 300 billion contract with Openai. To meet this agreement, Openai will have to start producing more cash flow.
Two days after the September 11-Oracle’s earnings, Openeai and Microsoft published Openai to transform Openai into a non-profit organization with a public benefit company (PBC) from the non-profit organization. PBC is like a company with task -supported railings. The aim is to make a profit, but only if it fulfills a task. Nevertheless, Openai’s transition can allow it to raise more in billions of financing, which will help finance its agreement with OCI, even if Openai does not produce a positive free cash flow.
Openai has pros and cons as the cornerstone of Oracle’s accumulated works. On the one hand, it shows that one of the latest AI companies knows the value of Oracle. However, it also adds the risk of concentration to Oracle’s projections. And if Openai’s goals do not go as planned, Oracle’s estimated can be disintegrated.
Oracle attracts great opportunities from the Big Three Cloud player with a very Bloud offer. It has also created an attractive pricing model, especially for customers looking for high -performance information processing to train AI models.
To measure all the infrastructure of Oracle with customers on the door, including a jewel in Openai. It has become the best restaurant in the city with a reservation reservation for years in advance. Demand is undeniable, especially these are multiple billions of dollars, perennial contracts.
Considering Oracle’s extremely expensive valuation, investors should consider stocks only if they have a long -term time horizon if they have high -risk tolerance, and believe that Oracle’s multicoud proposal will be a leading option for AI customers. If this thesis emerges, Oracle will be more value than today in the future, the stock will be almost double last year and will be more than four floors in the last three years.
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Daniel Foelber None of the mentioned stocks have a position. Motley Fool, alphabet, Amazon, Microsoft and Oracle positions and recommends. Motley Fool recommends the following options: Long January 2026 Calls of $ 395 in Microsoft and short January 2026 Calls $ 405 in Microsoft. Motley Fool’s Explanation policy.
