Oracle gains as cloud infrastructure business gets AI boost

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Oracle gains as cloud infrastructure business gets AI boost
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Oracle shares jumped nearly 9 per cent on Wednesday as investors cheered a boom in demand for the company's relatively low-cost cloud infrastructure services from artificial intelligence applications.

Figurines with computers and smartphones are seen in front of Oracle logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/IllustrationOracle shares jumped nearly 9 per cent on Wednesday as investors cheered a boom in demand for the company's relatively low-cost cloud infrastructure services from artificial intelligence applications.

Oracle's cloud infrastructure, pitched as a less-expensive option to its rivals, has attracted business from venture capital-funded generative AI startups, including Elon Musk's xAI. The partnership enables OpenAI to use Microsoft's Azure platform on Oracle's infrastructure for some use-cases, while its new language learning models are being trained on a supercomputer built with Microsoft, the ChatGPT-maker said.

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