Mackenzie Sagalos with some news on the AI arms race. Hey Mac. >> Hey Carl.So OpenAI has signed a $ 38 billion infrastructure deal with Amazon Web Services, marking its first contract with the cloud leader and the clearest sign yet that it's no longer relying solely on Microsoft for compute. Now under the agreement, OpenAI will immediately start running workloads on AWS, tapping hundreds of thousands of NVIDIA GPUs across US data centers. It'll begin with existing capacity, then expand over time with AWS pl ...

Core Insights - Oracle has launched Oracle Multicloud Universal Credits, a new licensing option that simplifies the procurement of Oracle AI Database and OCI services across multiple cloud platforms including AWS, Google Cloud, and Microsoft Azure [1][2][3] - This initiative aims to streamline procurement processes, offering flexible terms and consistent contracts, which could enhance the adoption of Oracle's multicloud services [2][3] Unified Cross-Cloud Experience - The new Multicloud Universal Credits will allow customers to operate Oracle databases in their preferred regions while benefiting from a unified consumption model across different cloud providers [1][3] - Oracle's multicloud solution is designed to accelerate application modernization and cloud migrations, providing customers with more choices and flexibility [3] Additional Resources - Oracle's distributed cloud offers a single consumption model for seamless administration and governance across multiple clouds, enabling customers to deploy Oracle AI Database workloads in various regions [4] - The company provides options for hybrid cloud deployments, allowing customers to run OCI services in their own data centers and manage deployments globally [5][6] About Oracle - Oracle offers integrated applications and autonomous infrastructure in the Oracle Cloud, focusing on delivering innovative solutions to enhance cloud and AI capabilities [7]

Core Insights - Oracle and Google Cloud have announced the general availability of several new database services, enhancing Oracle Database@Google Cloud with embedded AI capabilities and expanded regional availability [1][2][3] Group 1: New Services and Features - Oracle Exadata Database Service on Exascale Infrastructure is now available, offering high performance at a lower entry point with flexible virtualized deployment and pay-as-you-go pricing [3][4] - Oracle Base Database Service is now available, simplifying database administration and accelerating application development with extensive automation and scalable resources [3] - Oracle Autonomous AI Lakehouse is now available, enabling enterprise-wide AI and analytics by integrating with various data platforms, including Google BigQuery and BigLake [3] Group 2: Regional Expansion - Oracle Database@Google Cloud is now available in three additional Google Cloud regions: Australia-Southeast 2 (Melbourne), North America-Northeast 1 (Montreal), and US Central 1 (Iowa) [3][4] - Existing regions have expanded capacity for disaster recovery, with plans for nine more regions in the next 12 months to meet growing demand [3][4] Group 3: Partner Program - A new partner program allows Google Cloud and Oracle partners to purchase and resell Oracle Database@Google Cloud through the Google Cloud Marketplace, enhancing multicloud and IT modernization initiatives [5][6] Group 4: Industry Demand and Innovation - There is a growing global demand for Oracle Database@Google Cloud across various industries, with organizations seeking agility, innovation, and speed in their multicloud deployments [2][6] - Strategic partnerships are being leveraged to combine Oracle's enterprise database capabilities with Google Cloud's AI and analytics technologies, enabling businesses to unlock the potential of their data [6]

Core Viewpoint - Oracle is positioning itself as an AI-first cloud provider, differentiating itself from the major cloud players and experiencing significant growth in customer orders for its cloud services [1] Group 1: Financial Projections - Oracle forecasts its Oracle Cloud Infrastructure (OCI) revenue to grow from approximately $10 billion in fiscal 2025 to $144 billion by fiscal 2030 [2] - This growth trajectory suggests OCI could surpass Google Cloud's current size in three years, Microsoft Azure in four years, and AWS in five years [3] Group 2: Competitive Positioning - Oracle is winning cloud contracts from leading AI companies, indicating its potential to become the top cloud provider for AI within the next five years [4] - The company is aggressively expanding its cloud infrastructure, with plans to bring 37 additional multicloud data centers online within a year, totaling 34 existing centers [6] Group 3: Unique Offerings - Oracle's multicloud data centers allow organizations to utilize services from multiple cloud providers while integrating Oracle's databases, enhancing performance and reducing latency [7][9] - Unlike its competitors, Oracle is embedding its infrastructure natively within the big three clouds, which is a key differentiator [8] Group 4: Strategic Partnerships - Oracle's contract backlog has surged by 359%, reaching $455 billion, with a notable multiyear $300 billion contract with OpenAI [12] - OpenAI's transition to a Public Benefit Corporation could facilitate additional funding, supporting its partnership with Oracle [13] Group 5: Market Demand - Oracle is attracting significant deals from major cloud players, driven by its competitive pricing model for high-performance computing tailored for AI [15] - The demand for Oracle's services is evident, with multiyear contracts indicating strong market interest [16]

Core Insights - Oracle's stock surged 30% after a quarterly earnings miss, indicating a significant shift in investor perception towards the company's growth potential in AI [2][12] - The company's cloud infrastructure revenue is projected to grow dramatically, reaching $18 billion in fiscal 2026 and potentially hitting $144 billion by fiscal 2030 [5][12] Financial Performance - Oracle reported non-GAAP earnings per share of $1.47, slightly below the expected $1.48, with revenue of $14.9 billion compared to the anticipated $15 billion [2] - The company's remaining performance obligations, or contract backlog, increased by 359% year over year to $455 billion, providing a strong foundation for future revenue growth [6][12] Growth Strategy - Oracle's multicloud database revenue grew by 1,529% year over year, as the company collaborates with competitors like AWS and Azure instead of competing directly [8][9] - The company plans to invest $35 billion in capital expenditures for fiscal 2026, a 65% increase, to develop AI-ready infrastructure [10] Market Positioning - Oracle is positioning itself as a critical player in the $500 billion AI market, moving beyond traditional database services to become essential infrastructure for AI applications [11][13] - The company's strategy includes securing multibillion-dollar AI contracts with major firms like OpenAI and Meta, enhancing its role in the AI ecosystem [9][13]

Core Insights - Oracle's cloud infrastructure business is projected to grow by 77% this fiscal year, indicating a significant increase in revenue expectations [1][14][21] - The company's recent stock surge, up 40%, reflects a substantial market cap increase, attributed to impressive bookings that surpassed previous fiscal years [3][4][21] - Oracle's competitive edge lies in its focus on performance and speed, allowing it to offer lower costs compared to competitors [10][11] Financial Performance - Oracle's cloud infrastructure revenue forecast is set at $18 billion for this year, with projections of $32 billion next year, and potentially reaching $144 billion in the following years [14][21] - The company reported bookings in the last quarter that were 10% higher than the total bookings from the previous four fiscal years combined, showcasing strong demand [4][19] Competitive Landscape - Oracle is positioning itself as a disruptor in the cloud market, focusing on GPU and AI capabilities, unlike competitors who are still managing older CPU-based offerings [11][20] - The demand for AI infrastructure remains high, with no signs of slowdown, benefiting Oracle's cloud services [16][20] - Oracle's multicloud strategy provides a unique advantage, allowing organizations to leverage different cloud providers effectively [23] Market Dynamics - The ongoing competition for Nvidia chips and the ability to expand data centers rapidly will be crucial for maintaining market share in the cloud infrastructure space [14] - Oracle's strategy includes embedding AI into its applications, which is expected to enhance its product offerings and overall business performance [20][22]

Group 1: Apple Inc. - Apple is set to debut its latest iPhone and Apple Watch lineups, with the iPhone 17 lineup being crucial for the company as it seeks to revive consumer interest [2][3] - The iPhone 17 Air is expected to be a thinner version but may have drawbacks such as a single camera and a smaller battery, although software tweaks could enhance its capabilities [5][6] - Analysts predict a potential price increase of up to $100 for the iPhone 17 Air, marking a significant change in pricing strategy [9] Group 2: Labor Market and Economic Indicators - A significant revision to US employment data could see a reduction of up to 1 million jobs for the 12 months through March, indicating a struggling labor market [11] - Employment growth has decelerated, with an average of only 29,000 new jobs created in the last three months, which is below long-term labor supply trends [27][28] - The probability of a recession in the next 12 months is estimated at 30%, reflecting concerns over the labor market and economic conditions [30] Group 3: Oracle Corporation - Oracle is positioned as an AI trade, with a strong focus on cloud services and a significant customer base of approximately 400,000 [16][24] - The company has a backlog expected to increase from $138 billion to $149 billion, indicating strong demand for its services [24] - Oracle's expansion into healthcare through the Cerner acquisition has positively impacted its revenue growth [20][21] Group 4: Market Movements and Mergers - Fox Corporation's stock is down following the resolution of the Murdoch family's succession battle, which has implications for the media empire [45][46] - Anglo-American has agreed to acquire Canada's Tech Resources for over $50 billion, driven by rising copper demand linked to the electric vehicle boom [54] - Novartis is set to acquire Tormaline for $1.4 billion, significantly boosting Tormaline's share price by over 58% in pre-market trading [57]

Core Insights - Palo Alto Networks has announced new security solutions aimed at enhancing quantum readiness and securing workloads in multi-cloud environments, addressing the evolving threats posed by quantum computing and AI [1][2] Group 1: Quantum Readiness Solutions - The company introduced a Quantum Readiness Dashboard that provides complete visibility and control over cryptographic risk posture for Next-Generation Firewall and Secure Access Service Edge customers [2] - The release includes the industry's first cipher translation, allowing applications that do not support quantum-safe encryption to be upgraded instantly [2] - Palo Alto Networks is launching 14 new 5th-generation Next-Generation Firewall models optimized for post-quantum cryptography, ensuring future-proof security investments [2] Group 2: Addressing Security Challenges - The complexity of multi-cloud environments and rapid advancements in AI have created a fragmented security landscape, necessitating intelligent and agile security solutions [3] - The new Cloud Network and AI Risk Assessment tool continuously evaluates cloud and AI assets for risks, ensuring optimal security by highlighting areas needing protection [3] - The platform features automatic deployment and scaling of software firewalls, cloud firewalls, and Prisma AIRS instances, streamlining operations and eliminating the need for additional point products [3] Group 3: Industry Partnerships and Applications - Organizations like the NBA are leveraging Palo Alto Networks' platform to enhance their multicloud infrastructure, ensuring secure and high-performance digital experiences [4] - Sabre emphasizes the need for a robust cybersecurity partner to navigate the evolving threat landscape, highlighting Palo Alto Networks as their choice due to its innovative solutions [5]

Core Insights - Nutanix has been recognized as a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025, marking its debut in this report following the launch of the Nutanix Kubernetes Platform (NKP) [1][3] - The NKP launch was preceded by Nutanix's acquisition of D2iQ, Inc.'s Kubernetes Platform, enhancing its ability to manage cloud-native applications across various environments [2][3] - Nutanix's Cloud Native AOS solution, which extends enterprise storage and data services to hyperscaler Kubernetes services, is now available globally [2] Product and Innovation - The Forrester report highlights Nutanix's revitalization of its Kubernetes efforts through D2iQ's leadership and funding, resulting in a unified platform that integrates data center, cloud, and edge [3] - Nutanix's NKP allows VMware users to transition virtual machines to Nutanix AHV and modernize with containers, enhancing its role in private and data center AI [3] - The NKP provides a complete, CNCF-compliant cloud-native stack, enabling platform engineering teams to manage Kubernetes clusters securely across on-premises, hybrid, and multicloud environments [3] Customer Impact - Customers using NKP can innovate more rapidly due to reduced operational complexity and simplified monitoring, facilitating container management at scale [3][4] - Nutanix has a global customer base for NKP, indicating widespread adoption and trust in its solutions [4]

Core Insights - Oracle is enhancing its hardware business by partnering with major cloud providers, allowing enterprises to utilize its database services within their preferred ecosystems, thereby reducing reliance on Oracle's own cloud [1][10] - Recent initiatives include the launch of Oracle Database@Google Cloud in Japan and Oracle Database@AWS, which are expected to drive hardware segment growth through increased sales of Exadata systems and related services [2][10] - Oracle is investing heavily in AI infrastructure, committing over $40 billion to acquire Nvidia chips and planning additional investments in data centers in Germany and the Netherlands [3][10] Hardware Business Expansion - Oracle's hardware revenues are projected to reach $3 billion in fiscal 2026, reflecting a 6.82% year-over-year increase in the fourth quarter of fiscal 2025, indicating strong growth driven by partnerships [4] - The company faces significant competition in the hardware space from Hewlett-Packard and Dell Technologies, which offer advanced solutions that challenge Oracle's offerings [5][6][7] Competitive Landscape - Hewlett-Packard provides powerful hardware solutions for AI workloads, including ProLiant Gen11 servers and energy-efficient systems that compete with Oracle's Exadata [6] - Dell Technologies offers flexible alternatives to Exadata, such as PowerEdge servers and VxRail systems, which have attracted customers seeking cost savings and reduced licensing exposure [7] Financial Performance and Valuation - Oracle's shares have appreciated 47.3% year to date, underperforming the broader technology sector and the software industry [8] - The company is currently trading at a trailing 12-month EV/EBITDA multiple of 30.15x, which is significantly higher than the industry average of 20.55x, indicating potential overvaluation [11] - The Zacks Consensus Estimate for Oracle's fiscal 2026 revenues is $66.57 billion, representing a 15.97% year-over-year growth, with earnings projected at $6.73 per share, suggesting an 11.61% increase from fiscal 2025 [14]