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Oracle’s sudden AI stardom is giving 1999 energy

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New York
 — 

Oracle, a large but generally sleepy cloud-computing company, just had an absolutely bonkers day on Wall Street.

The stock (ORCL) shot up more than 40% Wednesday morning, its largest single-day jump ever. It was such big leap that it minted Oracle co-founder Larry Ellison $100 billion in less than hour, making him the world’s richest person and bumping Elon Musk to second place.

The catalyst wasn’t a flashy product rollout or a surprise earnings beat — in fact, Oracle’s quarterly revenue and profit came in below Wall Street’s expectations Tuesday evening.

Instead, the fire came from Oracle’s outlook for the next few years, which, if it pans out, would cement the company as a power player in artificial intelligence. That’s a big “if,” though — especially given that the bulk of Oracle’s rosy outlook hinges on revenue from one major customer, the unprofitable OpenAI, according to the Wall Street Journal.

Oracle’s outlook is “so exuberant that if we’d gotten this sort of prediction from a less established company it might have been shrugged off as either a lie or a misplaced digit,” Steve Sosnick, chief strategist at Interactive Brokers, told me.

Here are the key things powering Oracle’s stock at a clip it hasn’t experienced since the late-90s dot-com-bubble era, when it rose nearly 600% in the span of a year before falling back to earth by 2022:


  • Oracle’s CEO, Safra Catz, said the company’s cloud infrastructure revenue would grow 77% to $18 billion by the end of May 2026. But that’s not all: It projects that revenue to hit $144 billion by 2030.

  • Catz said Oracle had signed four multi-billion-dollar contracts with three different customers, giving the company $455 billion in “outstanding contract revenue” that it expects to collect on. That metric is up 359% from last year.

Oracle, which sells database software, has somewhat quietly ingratiated itself to investors in the AI gold rush this year by securing deals with AI companies hungry for computing capacity. (If semiconductor giant Nvidia (NVDA) is the “picks and shovels” play of the current frenzy, think of Oracle as the Levi Strauss play — it’s not mining the gold, just providing durable trousers.) And now it’s making its debut as a force to be reckoned with against rival cloud-storage providers like Google, Amazon and Microsoft.

If Oracle’s head-spinning projections seem too good to be true, well, that’s all part of the fun-house mirror effect of the generative AI bubble (yes, I said “bubble”). Because for any of Oracle’s future projections to make sense, its AI customers, including OpenAI, have to make, like, a lot of money — something the ChatGPT maker has shown no clear path to doing anytime soon. (The Information reported last week that OpenAI’s projected cash burn this year through 2029 will hit $115 billion — about $80 billion higher than the company previously expected.)

Like other big tech names, Oracle is betting much of its future on the promise that demand for computing capacity will keep going up as generative AI ushers in some kind of as-yet-undefined revolution. So tech companies are spending hundreds of billions of dollars to build out the data centers — giant, energy-sucking buildings full of computer servers — to ensure the US has the technical infrastructure to deliver all of the AI magic.

That gamble on infrastructure is so massive it actually eclipsed consumer spending this year as the main driver of GDP growth, according to Renaissance Macro Research.

“This data center buildout continues to be a major support to the US economy… so we of course hope that Larry Ellison is right and that this massive buildout is sustainable,” Peter Boockvar, chief investment officer of One Point BFG Wealth Partners, said in a note Wednesday.

But Boockvar also sounded a note of caution: “While Oracle just knocked the cover off the ball, when I see one day market cap increases of such epic proportions, I can’t not think of what I witnessed in 1999.”

(Ahem, 1999 being the start of the dot-com crash.)

Oracle’s capital expenditures are “truly extraordinary,” at $35 billion for this fiscal year, which is about 52% of revenue, Boockvar notes. In 2024, it was 13% of the company’s revenue. “We’ve never seen such capital intensity from these previously large-free-cash-flow-generating businesses.”

In other words, Oracle is a huge company, and it’s never spent money like this ever before.

The risk here, of course, is that Oracle’s big customer, OpenAI, doesn’t deliver.

Generative AI, the engine of ChatGPT, is one of those rare technologies that manages to get less marketable over time. The more many regular people encounter AI in their lives, the more they come to associate it with “slop” on their Facebook feeds. Chatbots cannot reliably respond to human beings’ queries, and they have a pesky tendency of dragging said humans into delusional, at times deadly, mental spirals.

It isn’t completely useless, to be sure, but AI’s proponents have had an extremely difficult time building an application that’s lived up to their own hype (nor, certainly, has any of it lived up to the lofty valuations propping up American tech companies).

Without a game-changing tech update that either drastically lowers its costs or dramatically boosts its profits, OpenAI may be toast. And that presents a systemic risk to not just Oracle, in particular, but to the tech sector more broadly.

If Oracle can stick the landing, Sosnick said, “then by all means, this rally is well-deserved.”

“Yet you are correct in pointing out the risks inherent in the market’s complete revaluation of Oracle… Not only are Oracle stockholders crucially dependent upon the company meeting its guidance, but the broader market is, too.”





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AI Is Automating Technical Skills. Here Are the Soft Skills You Need.

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If hard skills are increasingly being automated, employers are shifting focus to what AI can’t replicate: creativity, empathy, critical thinking, and other essential soft skills.

For years, technical abilities were king, but the tide may be turning.

Indeed’s Hiring Lab took a look at job postings and analyzed which soft skills were listed. The top were communication, leadership, and organizational prowess. Forty-three percent of all job listings had at least one soft skill advertised.

Soft skills show up in job postings across industries, but maybe not where you’d expect:

In a world where machines can write code and analyze spreadsheets, the need for human insight, emotional intelligence, and creativity has never been more critical.

Employers don’t just want workers who can do the job; they want people who can collaborate, innovate, and lead.

Sign up for BI’s Tech Memo newsletter here. Reach out to me via email at abarr@businessinsider.com.





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How AI Can Support Healthcare Supply Chains With Predictive Tools

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Archie Mayani is the chief product officer at GHX, a global supply chain company that uses data and cloud-based technologies to connect healthcare providers like hospital systems and their suppliers.

For more than 20 years, Mayani has worked on clinical and supply-chain health technologies at companies like Change Healthcare and United Health Group.

At GHX, Mayani works to ensure that the company develops technology that can help hospitals procure patient supplies — like implants and IV fluids — as seamlessly as possible. By using AI-powered technologies that can anticipate supply chain disruptions, prioritize them in order of most critical, and identify substitutions, hospitals can be better equipped to provide effective patient care.

Business Insider interviewed Mayani about what sets healthcare apart from other industries when it comes to AI implementation.

This interview has been edited for length and clarity.

Rachel Somerstein: How is healthcare unique as an industry, particularly when we think about the integration of AI?

Archie Mayani: I’m based in Silicon Valley, where everybody wants to fail fast and move forward. But healthcare is very different from other sectors using AI.

When you are building a dating app and your AI hallucinates, it’s kind of funny and makes a great first-date story. When you have a patient on the operating table and you don’t have the right supplies delivered at the right time, it’s scary.

Can you talk about the goals of AI implementation in healthcare supply chain management?

Healthcare is about patient safety and how you use technologies responsibly, always putting the patient in the center. When we think about supply chain management, it’s almost like an invisible operating system in this shared ecosystem of patient care and delivery.

GHX’s mission with AI implementation revolves around delivering the right supplies at the right time to improve the quality of care and make it more affordable.

How did you arrive where you are now?

We have been leveraging AI and machine learning for the last 15 years. A lot of our work during the pandemic involved making supply disruptions more visible, with the goal of making supply chains more resilient and proactive.

One of the most important cases we thought about, coming fresh off the pandemic, was, “Can we look at backorder anticipation?”

It doesn’t matter what the cause is — it can be geopolitical conflict or meteorological tragedies. It could be that a trailer was dislodged and now we’ve lost the supplies on the freeway. But if we can anticipate back orders, we can anticipate disruption.

If the system is intelligent enough, it could recommend nearby substitutes within your distributed area. We started there, on a path of, “We’re going to build this machine-learning model that’s going to be intelligent, anticipate these disruptions, and make substitution recommendations.”

Where is AI in supply chain management working best right now?

We have an agile development approach at GHX, where our customers give us live feedback. We had an “aha” moment from our customers: They said, “This is absolutely what we’ve asked for for the past 20 years. You are starting to predict all of these disruptions, but the disruption of a Band-Aid is not the same as a disruption of IV fluid.”

They asked, “Can you make this technology even more intelligent for what I need, depending on where I think my most critical risks are and what kind of care delivery is most important to my organization?”

So we came up with the idea of clinical sensitivity and a confidence score, essentially to validate whether disruptions are clinically relevant to specific customers.

That was one of the things that changed the trajectory of our AI implementation road map: Just because we can deliver insights doesn’t make them useful; they have to be predictive and personalized.

What does the future of AI in healthcare supply chain management look like?

Since healthcare is different and unique from other industries, our approach is to automate workflows as much as possible using agents while keeping a human in the loop. Once the customer feels confident, we can start fully abstracting those workflows so that AI agents are handling them entirely.

The other place gaining traction is copilot environments. For example, we have a product called the perfect order dashboard, which marries data insights. A customer may say, “Show me the view of my world, of where the supplies are, of where I’m doing an exceptional job with my suppliers getting those supplies on time, making sure that the orders and invoices are paid on time, and show me all of the discrepancies.” Still, that’s not enough.

The copilot allows you to tell a story with that data, very similar to a ChatGPT-like experience: “Show me the top three defaulting suppliers not delivering supplies on time.”

Once you have those supplier lists generated, you can say, “Send an email to XYZ supplier, making sure we have a quarterly business review scheduled, and please attach the perfect order dashboard view showing the last quarter’s trend.”

It might seem small, but it’s a huge value-add. It used to take maybe three or four hours to understand the data, extract insights, and drive follow-up actions and decisions. Now, it takes minutes.

What advice do you have for others in your position or who hope to be?

The hardest or most useful thing you can do is to say no.

In healthcare, everything is urgent — and it truly is. But not everything matters equally. So, the ability to say no to the right things and ensure that you’re focusing on the highest value-added items for your customers is critical when you’re in healthcare.

Big Tech, or even a smaller tech startup, can innovate as research labs and fail. We don’t have that option. So understanding what matters now, what will matter in 10 years, and finding the right balance to focus on the right innovations, becomes critical.

It’s about having the right data, the right governance and mechanisms, and always thinking about performance, security, and privacy. It’s also about making responsible choices on where to invest your energy, so that you’re ultimately not working on the sexiest, coolest, or hardest things.

It comes back to the patient: making care affordable and of the highest quality possible.





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Hundreds of Hull families to get school uniform money

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More than 1,000 students will get extra help with school uniform costs, Hull City Council has said.

Next month, Year 7 pupils in Hull who receive free school meals will be given a £50 uniform voucher – £10 more than in previous years.

The money, from the government’s Household Support Fund, will be distributed to families before the October half term.

Council leader Mike Ross said: “We are absolutely aware that we are still in a cost of living crisis, so we hope these increased grants can help make a difference.”

Ross added: “We know that £50 won’t cover every item of uniform, which is why we’ve called on the government to provide additional support to local authorities like Hull to be able to provide more help for children from low-income families.

“Having been asked to look at the level of funding for school uniforms by full council, I know it was the right move to increase the amount available for those in need.”



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