5 ms·

Oracle stock gains 36% to post best day since 1992, adding $244B in value

48 points by pera 1y ago

bdcravens 1y ago
And vaulting Ellison ahead of Musk as the world's richest > Oracle’s founder, Larry Ellison, added $100 billion to his net worth on Wednesday. Bloomberg reported that he had topped Tesla CEO Elon Musk as the world’s richest person.
throwmeaway222 1y ago
Ellison called cloud computing "complete gibberish" and "insane," dismissing it as merely a marketing term. He argued that a "cloud" was simply a network of computers. in 2008
- ysofunny 1y ago
  cloud compute business has turned into real state. the market seems to think he was correct at this moment
- inemesitaffia 1y ago
  Definitely still true
- dijit 1y ago
  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.
- deleted 1y ago
  [deleted]
- dismalaf 1y ago
  He's not wrong about what it is, "cloud" literally is just marketing jargon for someone else's network of computers...
- wmf 1y ago
  Clearly he's willing to change his mind. I guess you aren't. (And AWS was pretty overhyped in 2008.)
  - throwmeaway222 1y ago
    I just loved the juxtaposition!
philipkglass 1y ago
Who are Oracle's cloud computing customers? In my circle I hear mostly about AWS, with a little Azure and GCP, but I don't know people running anything on Oracle Cloud. Presumably there are circles where Oracle Cloud is gaining rapidly, given these numbers. Are these Oracle customers shifting from other cloud providers or using cloud resources for the first time? EDIT: I missed the news from yesterday that OpenAI signed a $300 billion (!) contract with Oracle Cloud: https://techcrunch.com/2025/09/10/openai-and-oracle-reportedly-ink-historic-cloud-computing-deal/ https://techcrunch.com/2025/09/10/openai-and-oracle-reported... So this big cloud revenue jump may be from a single giant customer.
- EduardoBautista 1y ago
  Some small startup called OpenAI signed a $300m deal with them.
- dijit 1y ago
  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.
  - antonymoose 1y ago
    Why the Google Cloud / CTO association? I’m not at that level in my career, but I have had very negative issues with Google, their product graveyard, and their lacking of human support for serious issues for paid offerings. I would not put my business in their hands, ever.
    - trenchpilgrim 1y ago
      > their lacking of human support for serious issues for paid offerings. Turns out this problem disappears if you spend enough money. GCP does a _lot_ of things as well or better than AWS. I particularly mostly like their IAM model (the entire stack including their nice managed identity implementation and use of public key cryptography instead of API keys) and how "projects" (cloud accounts) can inherit properties in a hierarchy.
Jyaif 1y ago
Glad I followed my rule of never shorting a stock.
- xnx 1y ago
  Today might be the day to start
fuckinpuppers 1y ago
It’s insanity to me that a large company was able to jump 36% in a day. I don’t care what the reason is. I’ve seen this is based on their cloud's AI demand… but really, 36%? Was there some major major contract signed worth $100B? Has anyone used their cloud? It’s terrible.
- dj_axl 1y ago
  OpenAI contract, "Sept 10 (Reuters) - OpenAI has signed a contract to purchase $300 billion in computing power over roughly five years from Oracle".
- signalblur 1y ago
  Yeah OpenAI signed a huge deal with them - $300 Billion Wild - I’d love to be the sales guy who got that commission
  - zamadatix 1y ago
    A lot of commission plans, even those which advertise "uncapped" commission, will still have the ability to set a cap for commission due to a single whale. Not that hitting your cap is an unenviable position in itself or anything... just perhaps a lot less exciting than it may sound (or not, just depends on the rules in the plan and what the leadership decides on the given deal). That is, if one sales rep can even claim such a large deal as their own work. E.g. a few years back I worked with a guy (at an IT sector company) who had a quota of 3 million in the region, but won a single deal worth 30 million + had a great quarter in general anyways. He ended up not getting too much more than if he just had the great quarter.
  - mandeepj 1y ago
    > Wild - I’d love to be the sales guy who got that commission Sorry to share - there's no sales guy here. It all happened at the top, hint - Stargate.
- conductr 1y ago
  Yes, contract with OpenAI
dec0dedab0de 1y ago
Are there any tech people on here choosing any oracle products? With the exception of the DB, I have never met anyone who used anything from oracle willingly. It was always because someone high up who got taken to lunch and came back with a signed contract.
- mtlynch 1y ago
  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.
  - baal80spam 1y ago
    > on Oracle cloud it's free And technically can go poof at any time, I guess?
    - mtlynch 1y ago
      Yep, but great for stuff where that's okay. I use mine as a CI server and for fuzz testing.
  - rjh29 1y ago
    Sounds good but I note there's a limit of 3000 OCPU hours and 18000 GB hours a month. Any idea how easy that is to exceed? Could get expensive. edit: and 200GB of free block volume storage WITH backups? That seems like a good replacement for standard cloud storage.
  - dec0dedab0de 1y ago
    I do like free
- qcnguy 1y ago
  You mean other than Java?
aurareturn 1y ago
The company said Tuesday after the bell that it has $455 billion in remaining performance obligations, up 359% from a year earlier. Oracle now sees $18 billion in cloud infrastructure revenue in fiscal 2026, with the company calling for the annual sum to reach $32 billion, $73 billion, $114 billion and $144 billion over the subsequent four years. Ok. Who is paying for these? I know OpenAI's revenue 3x'ed this year to $12b. Let's say they get to $15b by end of the year. Let's say they 3x next year to $45b/year. $114b? $144b for Oracle? per year? Who? Can someone make a serious attempt at speculating who and how revenue will get to 144b/year? I know Oracle as a Stargate partner. Maybe this is OpenAI being extremely bullish on its growth figures? Edit: Ok. I have a theory. Oracle is the only big cloud company NOT developing their own AI silicon chips. AWS, Google, Meta, Apple, Microsoft are all making internal AI chips that compete against Nvidia. Nvidia prioritizes Oracle as a partner so the first and the bulk of Nvidia's chips go to Oracle. Therefore, AI labs are going to Oracle for Nvidia access. Video on Ellison having dinner with Jensen Huang "begging" him for GPUs [0]. [0]https://www.youtube.com/watch?v=zPQnPciuxhU https://www.youtube.com/watch?v=zPQnPciuxhU
- trenchpilgrim 1y ago
  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.
- panarky 1y ago
  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?
srhngpr 1y ago
I'm struggling to understand the narrative around how Oracle is being positioned as a rival to Nvidia in the context of AI, or AI in general: https://finance.yahoo.com/news/nvidia-may-have-a-rival-on-the-ai-dance-floor-oracle-163818448.html https://finance.yahoo.com/news/nvidia-may-have-a-rival-on-th... "Oracle is clearly leveraging a number of advantages in its cloud software/hardware businesses to attract the largest of the AI enterprises, including OpenAI, xAI, Meta, NVIDIA and AMD," What exactly are these advantages?
- qcnguy 1y ago
  Fast networking, not competing with NVIDIA, not competing with the big labs.
ChrisArchitect 1y ago
Yesterday's news; Related: OpenAI, Oracle Sign $300B Computing Deal, Among Biggest in History https://news.ycombinator.com/item?id=45201595 https://news.ycombinator.com/item?id=45201595
ddtaylor 1y ago
If you're wondering who uses Oracle it's TikTok.
xnx 1y ago
> Long-form scrolling. Oversized footers. Absurd whitespace. > Why are we doing this? What if we just made better ways to consume content? Yes! Yes! > It has window snapping, keyboard shortcuts, and a bookmark app. It works as well as you’d expect an operating system to work in a browser. Oh no...

48 points by pera 1y ago

And vaulting Ellison ahead of Musk as the world's richest > Oracle’s founder, Larry Ellison, added $100 billion to his net worth on Wednesday. Bloomberg reported that he had topped Tesla CEO Elon Musk as the world’s richest person.

throwmeaway222 1y ago

Ellison called cloud computing "complete gibberish" and "insane," dismissing it as merely a marketing term. He argued that a "cloud" was simply a network of computers. in 2008

ysofunny 1y ago
cloud compute business has turned into real state. the market seems to think he was correct at this moment
inemesitaffia 1y ago
Definitely still true
dijit 1y ago
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.
deleted 1y ago
[deleted]
dismalaf 1y ago
He's not wrong about what it is, "cloud" literally is just marketing jargon for someone else's network of computers...
wmf 1y ago
Clearly he's willing to change his mind. I guess you aren't. (And AWS was pretty overhyped in 2008.)
- throwmeaway222 1y ago
  I just loved the juxtaposition!

philipkglass 1y ago

Who are Oracle's cloud computing customers? In my circle I hear mostly about AWS, with a little Azure and GCP, but I don't know people running anything on Oracle Cloud. Presumably there are circles where Oracle Cloud is gaining rapidly, given these numbers. Are these Oracle customers shifting from other cloud providers or using cloud resources for the first time? EDIT: I missed the news from yesterday that OpenAI signed a $300 billion (!) contract with Oracle Cloud: https://techcrunch.com/2025/09/10/openai-and-oracle-reportedly-ink-historic-cloud-computing-deal/ https://techcrunch.com/2025/09/10/openai-and-oracle-reported... So this big cloud revenue jump may be from a single giant customer.

EduardoBautista 1y ago
Some small startup called OpenAI signed a $300m deal with them.
dijit 1y ago
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.
- antonymoose 1y ago
  Why the Google Cloud / CTO association? I’m not at that level in my career, but I have had very negative issues with Google, their product graveyard, and their lacking of human support for serious issues for paid offerings. I would not put my business in their hands, ever.
  - trenchpilgrim 1y ago
    > their lacking of human support for serious issues for paid offerings. Turns out this problem disappears if you spend enough money. GCP does a _lot_ of things as well or better than AWS. I particularly mostly like their IAM model (the entire stack including their nice managed identity implementation and use of public key cryptography instead of API keys) and how "projects" (cloud accounts) can inherit properties in a hierarchy.

Jyaif 1y ago

Glad I followed my rule of never shorting a stock.

xnx 1y ago
Today might be the day to start

fuckinpuppers 1y ago

It’s insanity to me that a large company was able to jump 36% in a day. I don’t care what the reason is. I’ve seen this is based on their cloud's AI demand… but really, 36%? Was there some major major contract signed worth $100B? Has anyone used their cloud? It’s terrible.

dj_axl 1y ago
OpenAI contract, "Sept 10 (Reuters) - OpenAI has signed a contract to purchase $300 billion in computing power over roughly five years from Oracle".
signalblur 1y ago
Yeah OpenAI signed a huge deal with them - $300 Billion Wild - I’d love to be the sales guy who got that commission
- zamadatix 1y ago
  A lot of commission plans, even those which advertise "uncapped" commission, will still have the ability to set a cap for commission due to a single whale. Not that hitting your cap is an unenviable position in itself or anything... just perhaps a lot less exciting than it may sound (or not, just depends on the rules in the plan and what the leadership decides on the given deal). That is, if one sales rep can even claim such a large deal as their own work. E.g. a few years back I worked with a guy (at an IT sector company) who had a quota of 3 million in the region, but won a single deal worth 30 million + had a great quarter in general anyways. He ended up not getting too much more than if he just had the great quarter.
- mandeepj 1y ago
  > Wild - I’d love to be the sales guy who got that commission Sorry to share - there's no sales guy here. It all happened at the top, hint - Stargate.
conductr 1y ago
Yes, contract with OpenAI

dec0dedab0de 1y ago

Are there any tech people on here choosing any oracle products? With the exception of the DB, I have never met anyone who used anything from oracle willingly. It was always because someone high up who got taken to lunch and came back with a signed contract.

mtlynch 1y ago
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.
- baal80spam 1y ago
  > on Oracle cloud it's free And technically can go poof at any time, I guess?
  - mtlynch 1y ago
    Yep, but great for stuff where that's okay. I use mine as a CI server and for fuzz testing.
- rjh29 1y ago
  Sounds good but I note there's a limit of 3000 OCPU hours and 18000 GB hours a month. Any idea how easy that is to exceed? Could get expensive. edit: and 200GB of free block volume storage WITH backups? That seems like a good replacement for standard cloud storage.
- dec0dedab0de 1y ago
  I do like free
qcnguy 1y ago
You mean other than Java?

aurareturn 1y ago

The company said Tuesday after the bell that it has $455 billion in remaining performance obligations, up 359% from a year earlier. Oracle now sees $18 billion in cloud infrastructure revenue in fiscal 2026, with the company calling for the annual sum to reach $32 billion, $73 billion, $114 billion and $144 billion over the subsequent four years. Ok. Who is paying for these? I know OpenAI's revenue 3x'ed this year to $12b. Let's say they get to $15b by end of the year. Let's say they 3x next year to $45b/year. $114b? $144b for Oracle? per year? Who? Can someone make a serious attempt at speculating who and how revenue will get to 144b/year? I know Oracle as a Stargate partner. Maybe this is OpenAI being extremely bullish on its growth figures? Edit: Ok. I have a theory. Oracle is the only big cloud company NOT developing their own AI silicon chips. AWS, Google, Meta, Apple, Microsoft are all making internal AI chips that compete against Nvidia. Nvidia prioritizes Oracle as a partner so the first and the bulk of Nvidia's chips go to Oracle. Therefore, AI labs are going to Oracle for Nvidia access. Video on Ellison having dinner with Jensen Huang "begging" him for GPUs [0]. [0]https://www.youtube.com/watch?v=zPQnPciuxhU https://www.youtube.com/watch?v=zPQnPciuxhU

trenchpilgrim 1y ago
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.
panarky 1y ago
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?

srhngpr 1y ago

I'm struggling to understand the narrative around how Oracle is being positioned as a rival to Nvidia in the context of AI, or AI in general: https://finance.yahoo.com/news/nvidia-may-have-a-rival-on-the-ai-dance-floor-oracle-163818448.html https://finance.yahoo.com/news/nvidia-may-have-a-rival-on-th... "Oracle is clearly leveraging a number of advantages in its cloud software/hardware businesses to attract the largest of the AI enterprises, including OpenAI, xAI, Meta, NVIDIA and AMD," What exactly are these advantages?

qcnguy 1y ago
Fast networking, not competing with NVIDIA, not competing with the big labs.

ChrisArchitect 1y ago

Yesterday's news; Related: OpenAI, Oracle Sign $300B Computing Deal, Among Biggest in History https://news.ycombinator.com/item?id=45201595 https://news.ycombinator.com/item?id=45201595

ddtaylor 1y ago

If you're wondering who uses Oracle it's TikTok.

xnx 1y ago

> Long-form scrolling. Oversized footers. Absurd whitespace. > Why are we doing this? What if we just made better ways to consume content? Yes! Yes! > It has window snapping, keyboard shortcuts, and a bookmark app. It works as well as you’d expect an operating system to work in a browser. Oh no...