Oracle Stock Gains 36% to Post Best Day Since 1992, Adding $244b in Value

Clearly he's willing to change his mind. I guess you aren't.

(And AWS was pretty overhyped in 2008.)

He's not wrong about what it is, "cloud" literally is just marketing jargon for someone else's network of computers...

Definitely still true

I mean, he’s not entirely wrong.

He just underestimated how much a combined marketing spend from three of the largest companies can convince people that an API is enough to justify extremely slow hardware at a 5-10x markup.

cloud compute business has turned into real state. the market seems to think he was correct at this moment

Cloud providers are chosen from the top sometimes.

if you’re using Azure, your CFO probably made the decision.

if you’re using AWS, your CEO likely made the decision.

if you’re using Google cloud, likely your CTO made the decision.

If your company relies on government contracts; they dictate the cloud provider; and Oracle knows this.

Some small startup called OpenAI signed a $300m deal with them.

Oracle Cloud's strategy early on was to go after huge customers who they thought would like to use the cloud, but otherwise couldn't use AWS for technical reasons. They were the first to do bare metal hosts (no hypervisor) and Layer 2 networking, for example (layer 2 networking not necessarily being anything amazing, but they recognized that lots of potential corporate customers had built their own infrastructure that relied on it, so it was a big barrier to cloud adoption). They also will bend over backwards to gain the customers with deep pockets like big banks, auto manufacturers, etc. This is how they ended up with TikTok. And part of this is that they are very aggressive about building regions, because some of the big customers have hard requirements about where physically their data resides (think small governments that need/want their data on their own soil). I don't know where they stand now from a technical competition perspective (those examples I gave are no longer exotic in 2025), but I suspect they have continued this "court the huge customers" strategy.

Today might be the day to start

Yeah OpenAI signed a huge deal with them - $300 Billion

Wild - I’d love to be the sales guy who got that commission

OpenAI contract, "Sept 10 (Reuters) - OpenAI has signed a contract to purchase $300 billion in computing power over roughly five years from Oracle".

Yes, contract with OpenAI

Not for anything real, but Oracle Cloud's free tier is atypically nice.

Oracle Cloud's free tier includes a 4 CPU / 24 GB RAM Ampere A1 ARM VM. On AWS / GCP, an equivalent VPS would be $100+/month, but on Oracle cloud it's free.

You mean other than Java?

How do promises of $300B in future revenue somehow result in a $100B increase in Ellison's net worth today?

- The $300B from OpenAI doesn't even start until 2027 and runs through 2031

- We don't know anything about OpenAI's options to cancel, delay or modify the deal

- There's huge execution risk for Oracle, they have to scale up their operation by more 20x or 30x, obtain gear and staff and gigawatts of power

- Even if everything goes perfectly, and both Oracle and OpenAI perform, that $300B is revenue, not profit -- 70% or 80% of that goes suppliers for capex and operating costs

- That's an uncertain promise of a future stream of profits, and deserves a sizable discount to get back to present value

- Ellison owns about 40% of Oracle, so how does the share attributed to him personally get to $100B in today's dollars?

Sam Altman was saying they had a plan to get to AGI. I guess that then $114b? $144b goes from investors to OpenAI to Oracle as that kicks in. Not saying I expect that to happen but I wouldn't be surprised if the narrative moving the stock is something like that.

Yeah, I saw the news and I was, WTF? I don't think any serious IT person likes Oracle. So how is it possible that they make so much money? Who is hiring them?

Years ago I worked at a $BIGCORP which already had a major presence in Azure, AWS and private datacenters, and there was chatter with the execs about putting a footprint in Oracle. Wouldn't be surprised if that's happening now.

Partnering with the non-Amazon cloud providers meant spending several millions in surplus infrastructure costs to hire more engineers to un-fuck the alternate cloud shitshows, but unlocked billions in partner deals (think Microsoft promoting our products running on Azure to Azure customers). And then every 3-5 years when we negotiated new cloud resource SKU discount rates we had leverage on common resources like VMs, storage buckets and SQL databases. "If you can't beat this rate we'll move part of our capacity to the other clouds" kinda thing.

Someone explain to me how Oracle reporting residual performance obligations as though they were fact is different from Enron's mark-to-market accounting, because I don't really see why investors would do anything but run screaming from this. Oracle has been promised money by customers who don't currently have that money to deliver compute resources that Oracle doesn't currently have, and that adds $244 billion to their market cap in one day? That's the nearly the entire market cap of Cisco appearing out of thin air.

Fast networking, not competing with NVIDIA, not competing with the big labs.