In cooperation with Cohere, Oracle wants to prepare its public cloud for generative AI projects after Microsoft Azure.

2023 hasn’t been a bad year for Oracle so far. In its quarterly results, the company reports above-expected growth everywhere. The cloud segment grew the fastest year-over-year, growing 23 percent to $9.37 billion in revenue. On the other hand, revenue from cloud licenses and on-premises businesses fell 15 percent to $2.15 billion.

Oracle is doing well, according to founder and CEO Larry Ellison, the ideal time to look to the future. During the investor briefing, he mentioned that the company plans to launch a generative AI cloud service in partnership with Cohere soon. The latter is one of the biggest competitors of OpenAI, the makers of ChatGPT and Dall-E.

The AI ​​cloud service must compete with Microsoft’s Azure OpenAI service, where customers can introduce LLMs (Large Language Models). The choice for Cohere is logical; Oracle was a key investor in the company’s recent Series C investment round. The company will announce more details later this year.

Oracle has good prospects of success with its AI projects. Databases in the cloud can be a perfect architecture for generative AI. On the other hand, many investments have to be made, especially the purchase of GPUs. With the hype peaking today, there is scope for this investment. The fact that these GPUs might be more expensive than usual has everything to do with the AI ​​hype. Nvidia saw chip sales surge 40 percent and couldn’t keep up with orders, driving up the price.

Oracle’s stock price has risen all year. It’s already up 43 percent this year, well above the average 13 percent growth seen in the S&P 500 index, in which Oracle is a constituent.