Early results suggest that Oracle may have already captured some of the sweetest prizes from the latest technology craze over Generative AI.
In its recent quarterly earnings announcement, Oracle CTO Larry Ellison states that a number of these Gen AI companies – more than 30 according to the press release – have committed to buying more than $2 billion of capacity in Oracle Cloud Infrastructure to help train their large language models.
Assuming at least 100 such Gen AI companies are going to be running OCI for the next three years – a typical contract length – for Cloud infrastructure services, that would amount to a cool $6.7 million per account per year, or at least half a million dollars every month. By comparison, Oracle is sending six-figure range invoices monthly to Twitter for its use of OCI, according to recent press reports. In other words, some of these well-financed Gen AI startups are already paying for massive capacity on OCI at the same trajectory as that of a Cloud pioneer like Twitter.
A new partnership with Cohere, a generative AI startup cited by Ellison, involves using OCI for building and training AI models, and delivering powerful and secure AI capabilities. Cohere models will be directly integrated into the industry’s most complete portfolio of business applications, including Oracle Fusion Cloud Applications, Oracle NetSuite, and Oracle industry-specific applications. In addition, Oracle has partnered with Cohere to enable OCI customers to add generative AI capabilities to their own applications through simple APIs with a new managed service featuring Cohere’s large language models.
Another key performance indicator of Oracle’s successes in the much-hyped Gen AI phenomenon is that Oracle has already been providing mission-critical back-office applications to help these Gen AI companies run their operations efficiently.
For example, well-financed Gen AI companies that have achieved more than $1 billion in valuation with the so-called unicorn status including Altair, Anthropic, Descript, Jasper, Lightricks, OpenAI, and Replit are all current users of Oracle NetSuite ERP, according to our Buyer Insight Master Database.
List of Gen AI start-ups running on Oracle Cloud Infrastructure (OCI)
|Adept AI||Adept is an ML research and product lab building general intelligence by enabling humans and computers to work together creatively.||United States||Oracle Cloud Infrastructure|
|Altair Engineering, Inc.||Altair is a global leader in computational science and intelligence, which provides software and cloud solutions in the areas of simulation, high-performance computing (HPC), and artificial intelligence (AI).||United States||Oracle Cloud Infrastructure|
|Character AI||Character.ai simulates human conversation and generates text responses that sound natural using a neural language model.||United States||Oracle Cloud Infrastructure|
|Cohere||Cohere is the leading AI platform for enterprises. Their world-class AI is uniquely suited to the needs of business, unlocking unprecedented ease-of-use, accessibility, and data privacy.||Canada||Oracle Cloud Infrastructure|
|Falkonry||Falkonry provides AI at an industrial scale to help understand, improve operations, & drive immediate impact on reliability, quality & yield.||United States||Oracle Cloud Infrastructure|
|Hyperreal||Hyperreal is a leading Metaverse Studio and entertainment producer. It empowers A-list talent and A-list brands with a digital asset called a HyperModel that enables them to maximize their value in the world of virtual appearances and virtual commerce.||United States||Oracle Cloud Infrastructure|
|Modal Labs||Modal Labs is a developer of machine learning software intended to run code in the cloud. The company’s software writes the code and instantly launches hundreds of custom containers and runs scripts in the cloud faster than on the local machine and scales data applications, enabling developers to manage their cloud infrastructure.||United States||Oracle Cloud Infrastructure|
|MosaicML||MosaicML is the generative AI platform that empowers enterprises to build their own AI. MosaicML enables developers to maintain full control over the AI models they build, with model ownership and data privacy built into the platform’s design.||United States||Oracle Cloud Infrastructure|
|Respeecher||Respeecher, as a pioneer of AI-generated synthetic media. Respeecher applies AI to make one person speak in the voice of another specific person.||Ukraine||Oracle Cloud Infrastructure|
|Twelve Labs||Twelve Labs is an AI company that provides an end-to-end infrastructure to make all videos searchable. Its comprehensive AI extracts key features from video such as action, object, text on screen, speech, and people, and transforms them into vector representations, enabling fast and scalable semantic search.||United States||Oracle Cloud Infrastructure|
|Vector Space Bio||Vectorspace AI is a machine-learning blockchain-focused software development team founded 2018. Vectorspace AI maintains a deep understanding of the financial markets having developed algorithms for quantitative information arbitrage opportunities along with running public companies as well as advising hedge funds.||United States||Oracle Cloud Infrastructure|
Source: Apps Run The World, July 2023
Anthropic and OpenAI are noteworthy for their use of NetSuite ERP since 2019 as the former is closely tied to Google after raising nearly $1 billion in financing from investors including Google parent Alphabet, while Microsoft has invested $10 billion in the latter.
Across the three dozen of these unicorns being tracked by our database, NetSuite is the most favored ERP system, a track record that is consistent with the bigger population of technology services companies running Oracle applications for their mission-critical ERP financial management function.
Among the more than 6,800 professional services organizations – primarily those specializing in software and technology services – in the United States, Oracle has secured a 34% share of ERP use cases at these companies, according to our Buyer Insight Master Database.
Source: Apps Run The World, July 2023
Evan Goldberg, executive vice president and co-founder of Oracle NetSuite, has been vocal about NetSuite’s behind-the-scenes role in the making of many successful IPOs over the past few years. In 2021, almost two-thirds of tech IPOs ran on NetSuite. This Gen AI euphoria is no different as Oracle has continued to benefit handsomely by capitalizing on the high-octane growth rates of artificial intelligence startups, a pattern that has been playing out repeatedly since the early days of the Internet revolution in early 2000s.
At a time when few know exactly how to monetize Gen AI other than the common refrain of “Build It And They Will Come,’’ Oracle appears to have reaped early returns on one of the most exciting technology development cycles.
The parties that pocketed the most during the gold rush were the purveyors of tools and equipment and other supplies and the same scenario is manifesting in Gen AI with Oracle playing its strengths to the hilt because of an all-encompassing stack of products from Cloud infrastructure services to enterprise applications and its domain expertise from hardware to silicon that it acquired from Sun Microsystems.
In March 2023, Nvidia, the first trillion-dollar company created during the Gen AI gold rush, announced an expansion of its agreement with Oracle to run OCI for its Gen AI cloud services, citing OCI’s unique Supercluster capabilities for running high-performance Large Language Models.
What that entails is the fact the Oracle is sitting pretty just to supply the tools and shovels to help Gen AI companies train their LLMs and the associated Cloud workloads, along with the need to book, recognize and report their windfalls in order to better manage their complex business processes.
List of Oracle NetSuite ERP Customers
|Access Intelligence Group||Professional Services||1000||$74.0M||United Kingdom||Oracle NetSuite ERP|
|Accurate Background, Inc.||Professional Services||1700||$160.0M||United States||Oracle NetSuite ERP|
|Alkami Technology||Professional Services||851||$204.0M||United States||Oracle NetSuite ERP|
|Altair Engineering, Inc.||Professional Services||3200||$572.0M||United States||Oracle NetSuite ERP|
|Anthropic||Professional Services||160||$20.0M||United States||Oracle NetSuite ERP|
|Asana, Inc.||Professional Services||1782||$547.0M||United States||Oracle NetSuite ERP|
|Descript||Professional Services||150||$50.0M||United States||Oracle NetSuite ERP|
|Government Brands||Professional Services||500||$65.0M||United States||Oracle NetSuite ERP|
|Great Bowery Inc.||Professional Services||60||$10.0M||United States||Oracle NetSuite ERP|
|Jasper||Professional Services||500||$110.0M||United States||Oracle NetSuite ERP|
|Lightricks||Professional Services||650||$150.0M||Israel||Oracle NetSuite ERP|
|OpenAI||Professional Services||375||$200.0M||United States||Oracle NetSuite ERP|
|Replit||Professional Services||150||$20.0M||United States||Oracle NetSuite ERP|
|Rightpoint||Professional Services||700||$82.0M||United States||Oracle NetSuite ERP|
|Riveron Consulting, LP||Professional Services||550||$58.0M||United States||Oracle NetSuite ERP|
|Roofstock, Inc.||Professional Services||600||$75.0M||United States||Oracle NetSuite ERP|
|SADA Systems, Inc.||Professional Services||300||$70.0M||United States||Oracle NetSuite ERP|
|Shift7 Digital LLC||Professional Services||100||$15.0M||United States||Oracle NetSuite ERP|
|Shutterfly Inc||Professional Services||7094||$1.96B||United States||Oracle NetSuite ERP|
|Skorpios Technologies, Inc.||Professional Services||150||$10.0M||United States||Oracle NetSuite ERP|
|SmartDrive Systems||Professional Services||725||$100.0M||United States||Oracle NetSuite ERP|
|Sterling Infosystems, Inc.||Professional Services||6000||$641.9M||United States||Oracle NetSuite ERP|
|TwentyEighty||Professional Services||200||$20.0M||United States||Oracle NetSuite ERP|
Source: Apps Run The World, July 2023