Oracle Partners with Meta to Boost AI Cloud and Llama Model Development
date
Dec 12, 2024
damn
language
en
status
Published
type
News
image
https://www.ai-damn.com/1733971746868-202304181745585427_7.jpg
slug
oracle-partners-with-meta-to-boost-ai-cloud-and-llama-model-development-1733971813804
tags
Oracle
Meta
AI Cloud
Llama Model
Multi-cloud
summary
Oracle has announced a collaboration with Meta to leverage its AI cloud infrastructure and develop AI agents based on the Meta Llama model. The partnership comes as Oracle's cloud revenue surges, driven by rising demand for AI services. Despite competition from Amazon and Microsoft, Oracle aims to expand its position in the multi-cloud market.
Oracle Partners with Meta to Strengthen AI Cloud and Llama Model Development
Oracle Corporation has revealed its ongoing expansion into artificial intelligence (AI) and cloud services, highlighted by a new collaboration with Meta. Announced during the company’s Q2 FY2025 financial report, Oracle’s revenue grew 9% year-over-year, reaching $14.1 billion. This increase was largely driven by a surge in demand for AI-related services, especially in the cloud sector, where Oracle earned $5.9 billion—an impressive 24% growth compared to the previous year.
Meta Collaboration
During the earnings call, Oracle's Chief Technology Officer, Larry Ellison, confirmed a strategic partnership with Meta to utilize its AI cloud infrastructure and jointly develop AI agents based on Meta’s Llama model. This partnership marks a significant step in Oracle’s broader AI strategy, as the company continues to deepen its involvement in the rapidly growing field.
Safra Catz, Oracle’s CEO, emphasized the role of AI in driving the company’s cloud revenue. She stated, “Record AI demand drove a 52% increase in Oracle’s cloud infrastructure revenue in the second quarter, a growth rate that far exceeds all of our hyperscale cloud infrastructure competitors.” Catz also forecast that Oracle’s cloud revenue will exceed $25 billion in the current fiscal year.
AI Supercomputers and GPU Growth
As part of its AI initiatives, Oracle has developed the world’s largest and fastest AI supercomputer, equipped with 65,000 NVIDIA H200 GPUs. The company reported a 336% increase in GPU usage in Q2, underscoring the rapid growth of AI workloads across various sectors.
Despite Oracle’s gains, its cloud revenue still lags behind other industry leaders. Amazon Web Services (AWS) reported $27.5 billion in cloud revenue for the last quarter, marking a 19% year-over-year increase, while Microsoft’s Intelligent Cloud division generated $24.1 billion, up 20%. Google Cloud also outpaced Oracle, with a 35% revenue increase to $11.4 billion.
Market Competition and Stock Performance
Amid fierce competition in the cloud services market, Oracle’s stock saw a decline of 9% following its earnings report. However, Ellison remained optimistic, asserting that Oracle’s cloud infrastructure is significantly more cost-effective and faster than its competitors, positioning it as a leader in generative AI model training. Ellison pointed out that Oracle’s AI capabilities are already being applied in various industries, including automated drug design, fraud detection, and satellite image analysis to improve agricultural productivity.
Multi-Cloud Era
Oracle also announced its official entry into the multi-cloud era, marking a major shift in its cloud strategy. Earlier this year, the company formed partnerships with Microsoft Azure and Google Cloud. Additionally, it collaborated with Amazon Web Services (AWS) to launch the Oracle Database@AWS service, enabling customers to access Oracle’s autonomous and Exadata database services within AWS data centers.
Ellison explained, “We have just begun our multi-cloud journey, with revenue expected to exceed $100 million in the first year.” He also predicted that Oracle’s multi-cloud business would eventually reach a multi-billion-dollar scale, encompassing services from AWS, Google, Azure, and other cloud providers.
In response to increased demand from large enterprise clients, including major banks and telecommunications firms, Oracle is building nearly a dozen new data centers to support its expanding cloud services.
Key Points
- Oracle has partnered with Meta to leverage its AI cloud infrastructure and collaborate on developing AI agents based on the Meta Llama model.
- Oracle’s cloud service revenue increased by 24% year-over-year in Q2, with full-year revenue expected to surpass $25 billion.
- Oracle has entered the multi-cloud era, strengthening its partnerships with Microsoft, Google, and AWS.
- Oracle is investing heavily in AI supercomputers and GPU usage to support the growing demand for AI workloads.
- Despite strong growth, Oracle faces intense competition from AWS, Microsoft, and Google in the cloud services market.