Oracles Larry Ellison thinks every government will want to build a sovereign AI cloud in the future
Summary
But during an earnings call in March, Oracles Larry Ellison laid out a future market opportunity focused on a major customer that investors may think about less often that Fortune 500 companies. Microsoft and Amazon had a lengthy battle over a cloud deal with the Department of Defense, and both those AI players as well as Oracle and Google ended up all in on a $9 billion DoD contract in 2022. Oracle shares are up about 21% YTD, but Barclays analyst Raimo Lenschow expressed concern about lower OCI growth during its latest earnings, which could "worry investors, as this is the main investment story." Cloud and generative AI applications allowing countries to give rural areas internet access could increase educational opportunities and create more economic value. Even the U.S., with all its resources, has been vulnerable to data hacks, including a recent February incident with contractor CGI Federal which exposed personally identifiable information on employees.