Oracle (ORCL), the erstwhile database powerhouse and now a serious cloud player, has made it known to the market that it has not forgotten its roots. The latest deal with Amazon.com (AMZN) Amazon Web Services proves it. The Larry Ellison-led company's Oracle AI Database has extended its partnership with the cloud leader, with the enhanced capabilities now available in 22 AWS regions.
Elaborating on the deal, Nathan Thomas, senior vice president of product management at Oracle, said, "Just one year after general availability, Oracle AI Database@AWS has reached global scale, with customers running business-critical workloads, and 22 AWS Regions available across Asia Pacific, Europe, and the Americas. This momentum demonstrates that enterprises want a simpler, lower-cost path to modernize their most important Oracle workloads within AWS environments. With the global reach and innovative new services we have made available over the last year, we are delivering that path and enabling more and more customers to put AI to work on live business data and build new applications without re-architecting or compromising performance." A $210 Billion Reason to Buy AMD Stock Here CoreWeave vs Nebius: Both Companies Reported Strong Earnings, But Here's the Stock You Should Buy Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here Markets move fast.
Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Although this was not enough to change the path of ORCL stock, which has been under pressure -22.77% year-to-date (YTD), Oracle AI Database can emerge as a new value driver for the company, leveraging a domain in which it is a market leader. Oracle's emergence as a noteworthy AI infrastructure player last year took the market by surprise and Larry Ellison to the very top of the world's richest charts.
A lot has happened since then, with the company's 5-year CDS reaching its all-time highs and critics pointing to customer concentration risks with respect to its dependence on OpenAI for backlog. However, as highlighted by Thomas earlier, Oracle AI Database has been in action for just about a year and has the potential to be a new value driver. Also, it is of strategic importance as it is trying to turn its database from a traditional system of record into an AI-native data platform.
A key development in that regard has been the Oracle AI Database 26ai, replacing Oracle Database 23ai. 26ai is the latest long-term support version of Oracle Database, rebuilt around the idea that AI should operate where corporate data already resides. It combines familiar relational processing with vector, graph, spatial, text, and JSON data in one engine. AI Vector Search can examine the meaning of documents, images, and other unstructured information while applying normal business filters through SQL.
On the other hand, Select AI lets users ask questions in natural language, while agent tools can retrieve information and perform governed tasks. Crucially, this is not a separate AI product loosely connected to Oracle Database. AI capabilities sit inside the database and inherit its security, transaction processing, backup, and availability controls.
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