The Wall Street Journal

Oracle’s Expensive AI Makeover Is Worth It

The highly profitable software giant is expected to burn cash for the next three years, but its odds of success are good

Oracle Chairman Larry Ellison. The software company has been burning cash building out its AI computing capacity over the past few quarters.
Oracle Chairman Larry Ellison. The software company has been burning cash building out its AI computing capacity over the past few quarters. Photo: USA TODAY NETWORK/Reuters

Spending a lot of money to hopefully make a lot more money has quickly become the norm in artificial intelligence. Oracle will be taking that to a whole other level. 

The software giant rocked Wall Street last week after reporting a huge jump in contracted future revenue to provide AI computing services. Over the next three years, those deals could double the size of what is already one of the world’s largest software companies by annual revenue.

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