Oracle is giving Wall Street numbers it can bet on as Larry Ellison's tech giant becomes investors' new favorite AI play

Company Overview - Oracle's cloud business revenue is projected to reach $18 billion this year, reflecting a 77% year-over-year increase, with expectations to grow to $144 billion by the start of the next decade [1] - The company has a market capitalization nearing $1 trillion, indicating its significant position in the tech industry [3] AI Market Position - Oracle is positioning itself as a utility provider for AI companies, offering essential resources for building and running compute-intensive models, while maintaining compatibility with major cloud providers like AWS, Microsoft Azure, and Google Cloud [2] - The company is experiencing substantial benefits from the AI boom, supported by concrete financial data rather than speculative projections [3][8] Financial Performance - Following a strong earnings report, Oracle's stock surged by 36%, significantly increasing the net worth of its chairman and co-founder, Larry Ellison, who briefly became the richest man in the world [4] - Oracle has a backlog of deals valued at $455 billion, including a partnership in the Stargate AI project with OpenAI and SoftBank, providing more certainty compared to many other AI companies [6] Operational Considerations - While the backlog of deals (remaining performance obligations) is promising, it does not guarantee revenue, as contracts can be canceled and the timing of fulfillment is uncertain [7]