Oracle has recently signed cloud transaction agreements involving seven different contracts with four clients, excluding OpenAI.

On October 16, Oracle convened the AI World conference in Las Vegas, where the company's newly appointed CEO, Clay Magouyrk, publicly addressed analysts. He announced that within the last 30 days, Oracle has secured new cloud infrastructure contracts worth $65 billion with four companies.

Among the recent clients entering cloud agreements with Oracle is the social media giant Meta. Following the announcement, Oracle's stock closed over 3% higher, approaching a market valuation of $900 billion.

Oracle anticipates that by fiscal year 2030, its cloud infrastructure revenue will surge to $166 billion, accounting for approximately 75% of total sales projected at $225 billion. In July, Oracle gained significant attention from the market by securing a more than $300 billion order commitment from OpenAI, which spurred a dramatic rise in Oracle's stock price. OpenAI has outlined a plan to invest $1 trillion in AI data center infrastructure over the next five years.

In response to the speculation surrounding Oracle's recent contracts, Magouyrk clarified that the new agreements pertain to four clients and seven different contracts, explicitly noting that OpenAI is not among them. "Some people sometimes question whether Oracle is solely dependent on OpenAI. We view OpenAI as a valuable client, but we have many more clients," he stated.

In recent years, Oracle has been actively expanding its cloud infrastructure segment to compete with firms like Amazon and Google. Concurrently, Oracle has begun offering its database services on platforms beyond its own cloud. These ventures are yielding substantial gross margins. Oracle reported that after accounting for expenses related to land, data centers, power, and computing equipment, the adjusted gross margins for AI infrastructure range from 30% to 40%.

Additionally, there are market concerns that the sudden surge in Oracle's recent orders could be driven by unrealistic commitments from tech giants towards AI, potentially creating a market bubble. Oracle’s Chief Financial Officer Doug Kehring responded to these concerns during an investor meeting. He stated, “I have read many reports speculating that Oracle is pursuing revenue for the sake of revenue. We must clarify that we only seek opportunities that can clearly demonstrate substantial market profit returns, which allow us to benefit from our intellectual property and the value provided to our clients.”