Oracle, a leading U.S. artificial intelligence (AI) and cloud corporations, said it is confident in high profitability as it has secured many large clients in addition to OpenAI.
According to CNBC and Reuters on the 16th (local time), Oracle co-CEO Clay Magouyrk said at the AI World Conference in Las Vegas, "In the past 30 days, we signed new cloud infrastructure contracts totaling $65 billion (about 92 trillion won)." He emphasized, "This amount consists of seven contracts with four clients, and none of them is OpenAI."
Magouyrk said, "Some question whether Oracle relies too heavily on OpenAI, but we are securing a much more diverse set of customers." He added, "Meta, which operates Facebook and Instagram, is also included in this deal."
Earlier in January this year at the White House, Oracle drew industry attention by announcing the "Stargate" hyperscale AI data center project with OpenAI and SoftBank Group. Since then, it disclosed order intake that far exceeded market expectations at its quarterly earnings release, sending the stock price sharply higher.
However, profitability concerns arose recently after some media reported that Oracle's AI cloud institutional sector gross margin was only around 14%. In response, Oracle explained, "The adjusted gross margin of the AI infrastructure institutional sector is in the 30%–40% range," adding, "Given the business structure, initial margins can be low, but we can expect high revenue in the long term."
Oracle shares closed at $313 in regular New York trading, up 3.09% from the previous day, but fell more than 2% in after-hours trading. Bloomberg said, "Oracle's outlook for fiscal year 2030 revenue of $225 billion and earnings per share (EPS) of $21 fell somewhat short of market expectations."