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Oracle to introduce cloud-based generative AI service

Oracle to introduce cloud-based generative AI service

Oracle will soon be introducing a cloud-based generative AI service. The move was announced by CEO Larry Ellison during a call following the quarterly results for fiscal Q4 of 2023.

During the call, Ellison announced that the cloud and tech giant will soon introduce a cloud-based generative AI service for the enterprise market. The service is being developed in partnership with startup Cohere.

Oracle recently invested a sizable amount in this AI startup and it is expected to compete with OpenAI. Cohere will use Oracle Cloud infrastructure for its LLM AI models.

Private training data for LLM models

More specifically, the announced cloud-based generative AI service targets the training data of large business users. The service allows them to securely train their data in specialized LLM models. In doing so, the service resembles competitor Microsoft’s Azure OpenAI Service.

According to Ellison, the service is of interest to those business sectors that use a lot of privacy-sensitive data. Consider the healthcare sector. Meanwhile, the new generative AI service is already being used internally at Oracle.

Strong fiscal fourth quarter 2023

According to the cloud and tech giant, quarterly figures for fiscal Q4 2023 turned out well. Revenue in the quarter under review rose 17 percent to a total of $13.84 billion.

Oracle’s largest market segment, cloud and license support grew 23 percent in revenue to a total of $9.37 billion. However, cloud and on-premises licensing revenue fell 15 percent to a total of $2.15 billion.

Also read: Oracle’s strategy for generative AI revolves around infrastructure and apps