Oracle is enhancing its generative artificial intelligence (AI) capabilities amidst intensifying competition in the cloud computing arena.


Oracle, a prominent U.S.-based cloud infrastructure provider, is enhancing its generative AI capabilities amidst escalating competition in the cloud sector and the burgeoning interest in AI technologies.

The surge in AI adoption, catalyzed by innovations like the launch of the ChatGPT chatbot in November 2022, has led to a heightened demand for cloud computing services and data centers. These technologies play a crucial role in AI model training, as they provide access to vast datasets essential for AI development.

To meet this demand and stay competitive, Oracle is integrating generative AI capabilities into its cloud infrastructure and applications. Rondy Ng, Oracle’s executive vice president of applications development, highlighted the power of combining predictive numbering capabilities with descriptive language, making generative AI a key focus area for the company.

In March, Oracle announced the addition of generative AI features across various applications, spanning finance, supply chain, human resources, sales, marketing, and service. These capabilities enable tasks such as generating financial reports and drafting job ads, thereby enhancing productivity and reducing business costs.

The move to bolster its AI offerings comes as Oracle positions itself to capitalize on the AI revolution. Analysts believe that Oracle’s extensive data assets and established client base give it a significant advantage in monetizing AI technologies.

While Oracle has trailed behind rivals like Amazon, Microsoft, and Google in cloud infrastructure market share, the increasing demand for AI technology has bolstered its position. Oracle’s CEO, Safra Catz, highlighted the company’s growing cloud infrastructure contracts and revenue during the fiscal third quarter.

Looking ahead, Oracle sees opportunities in areas like national and state government applications, where platforms like Oracle Cloud Infrastructure can play a vital role. The company is also exploring sovereign AI clouds, which operate exclusively within a country, aligning with the growing trend of data sovereignty.

To further expand its presence in the AI landscape, Oracle announced plans to invest over $8 billion in Japan over the next decade to enhance its cloud computing and AI infrastructure. Additionally, Oracle has partnered with Nvidia to deliver sovereign AI solutions to customers worldwide, cementing its position as a key player in the AI market.