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Oracle’s Significant Cloud Growth
Oracle (NYSE: ORCL) reported a remarkable 359% increase in its cloud unit’s remaining performance obligations (RPO) on September 9, 2023. This surge followed a $300 billion, five-year contract with OpenAI to provide AI compute capacity starting in 2027. Oracle’s shares rose by 24.4% in September, including a nearly 40% spike after the earnings announcement.
In a related development, Nvidia (NASDAQ: NVDA) established a long-term funding agreement with OpenAI, committing up to $100 billion to enhance data center capabilities. This partnership may alleviate investor concerns regarding OpenAI’s ability to fulfill the significant contract with Oracle, reinforcing Oracle’s position in the competitive AI landscape.
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