AI Research
Prediction: Oracle Will Surpass Amazon, Microsoft, and Google to Become the Top Cloud for Artificial Intelligence (AI) By 2031
Key Points
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Oracle is on its way to becoming the best cloud for AI and high-performance computing.
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Oracle multicloud is cutting networking complexity and reducing data transfer latency.
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OpenAI will need to raise capital or generate cash flow to afford its $300 billion cloud deal with Oracle.
On Sept. 10, Oracle (NYSE: ORCL) stock popped 36% in response to a massive increase in customer orders for Oracle’s cloud services.
Oracle forecasts that revenue from its Oracle Cloud Infrastructure (OCI) segment could grow from around $10 billion in its last fiscal year (fiscal 2025), to $18 billion in its current fiscal year (fiscal 2026), $32 billion in fiscal 2027, $73 billion in fiscal 2028, $114 billion in fiscal 2029, and $144 billion in fiscal 2030 — corresponding with calendar year 2031.
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For context, Amazon Web Services (AWS) generated over $60 billion in net sales in the first half of 2025 — so a $120 billion annual run rate. Microsoft, which just wrapped up its fiscal 2025 year, reported $106 billion in Intelligent Cloud revenue. And Alphabet‘s Google Cloud generated $26 billion in revenue in the first half of 2025. This means that OCI is forecast to exceed the current size of Google Cloud within three years, the current size of Microsoft Azure within four years, and the current size of AWS within five years.
Here’s why Oracle is winning cloud contracts from leading artificial intelligence (AI) companies like OpenAI, and why the company could become the top cloud for AI within the next five years.
Image source: Getty Images.
The future of cloud computing
Oracle’s push into cloud infrastructure is arguably its boldest bet in the company’s history. Oracle isn’t cutting corners, either; it is bringing on dozens of data centers online in just a few years. It has built 34 multicloud data centers and should have another 37 online in less than a year.
These multicloud data centers are unique because they allow an organization to use services or workloads from two or more cloud providers, such as AWS, Microsoft Azure, Google Cloud, and OCI. All of these clouds can work with the Oracle database. The idea is to allow customers to select the best cloud service for each task.
AWS, Azure, and Google Cloud all have multicloud strategies too, but the big difference is that Oracle is embedding native versions of its infrastructure (Oracle Autonomous Database and Exadata Database Service) inside the big three clouds to boost performance and decrease latency. Examples include Oracle Database@AWS, Oracle Database@Azure, and Oracle Database@Google Cloud. The “big three” are more about managing workloads rather than integrating them natively.
The buildout of OCI as a formidable alternative to the big three, paired with Oracle’s ultra-modern data centers, put Oracle on the cutting edge of data center workflow. According to Oracle, OCI can achieve 50% better price-to-performance and 3.5 times time savings for high-performance cloud computing workflows compared to the previous generation of computing.
Race to the clouds
Oracle is purpose-building its cloud from scratch specifically for AI, whereas the majority of AWS, Microsoft Azure, and Google Cloud handle non-AI tasks, like basic compute and storage, database and analytics, networking, etc. So while Oracle will likely become the biggest cloud for AI if it hits its fiscal 2030 OCI revenue target of $144 billion, it still may be a smaller cloud by total revenue compared to the more established giants.
Still, Oracle is achieving milestones that are impossible to ignore — laying the foundation for Oracle to be the go-to cloud for AI. It exited the recent quarter with a 359% increase in its contract backlog, bringing the total to $455 billion. Reports indicate that Oracle landed a multiyear $300 billion contract with OpenAI. To afford that deal, OpenAI will need to start generating more cash flow.
On Sept. 11 — two days after Oracle reported earnings — OpenAI and Microsoft released a joint statement to transition OpenAI from a pure-play nonprofit to a nonprofit owning a majority stake in a Public Benefit Corporation (PBC). A PBC is like a corporation with mission-backed guardrails. The aim is to generate a profit, but only if it fulfills a mission. Still, OpenAI’s transition could allow it to raise billions more in funding, which would presumably help fund its deal with OCI even if OpenAI isn’t generating positive free cash flow.
OpenAI, as the cornerstone of Oracle’s backlog, has its pros and cons. On the one hand, it demonstrates that one of the most cutting-edge AI companies recognizes the value in what Oracle is building. But it also adds concentration risk to Oracle’s projections. And if OpenAI’s targets don’t go as planned, Oracle’s forecast could fall apart.
A high-risk, high-potential-reward AI play
Oracle is attracting massive deals from the big three cloud players with its multicloud offering. It has also built an attractive pricing model for customers specifically looking for high-performance computing to train AI models.
With customers lining up at the door, including a jewel in OpenAI, all Oracle has to do now is scale its infrastructure. It’s become the best restaurant in town with reservations booked years in advance. The demand is undeniable, especially given these are multibillion-dollar, multiyear contracts.
Given Oracle’s extremely pricey valuation, investors should only consider the stock if they have a high risk tolerance, a long-term time horizon, and believe that Oracle’s multicloud offering will be the premier option for AI customers. If that thesis plays out, Oracle will likely be worth considerably more in the future than it is today, even after the stock has nearly doubled over the last year and more than quadrupled over the last three years.
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When artificial intelligence (AI) can help you retrieve literature, support your research, and even act as a “super assistant”, university education is undergoing a profound transformation.
On 9 September, XJTLU’s Centre for Knowledge and Information (CKI) hosted its third AI Learning Day, themed “AI-Empowered, Ecosystem-Co-created”. The event showcased the latest milestones of the University’s “Education + AI” strategy and offered in-depth discussions on the role of AI in higher education.
In her opening remarks, Professor Qiuling Chao, Vice President of XJTLU, said: “AI offers us an opportunity to rethink education, helping us create a learning environment that is fairer, more efficient and more personalised. I hope today’s event will inspire everyone to explore how AI technologies can be applied in your own practice.”
Professor Qiuling Chao
In his keynote speech, Professor Youmin Xi, Executive President of XJTLU, elaborated on the University’s vision for future universities. He stressed that future universities would evolve into human-AI symbiotic ecosystems, where learning would be centred on project-based co-creation and human-AI collaboration. The role of educators, he noted, would shift from transmitters of knowledge to mentors for both learning and life.
Professor Youmin Xi
At the event, Professor Xi’s digital twin, created by the XJTLU Virtual Engineering Centre in collaboration with the team led by Qilei Sun from the Academy of Artificial Intelligence, delivered Teachers’ Day greetings to all staff.
(Teachers’ Day message from President Xi’s digital twin)
“Education + AI” in diverse scenarios
This event also highlighted four case studies from different areas of the University. Dr Ling Xia from the Global Cultures and Languages Hub suggested that in the AI era, curricula should undergo de-skilling (assigning repetitive tasks to AI), re-skilling, and up-skilling, thereby enabling students to focus on in-depth learning in critical thinking and research methodologies.
Dr Xiangyun Lu from International Business School Suzhou (IBSS) demonstrated how AI teaching assistants and the University’s Junmou AI platform can offer students a customised and highly interactive learning experience, particularly for those facing challenges such as information overload and language barriers.
Dr Juan Li from the School of Science shared the concept of the “AI amplifier” for research. She explained that the “double amplifier” effect works in two stages: AI first amplifies students’ efficiency by automating tasks like literature searches and coding. These empowered students then become the second amplifier, freeing mentors from routine work so they can focus on high-level strategy. This human-AI partnership allows a small research team to achieve the output of a much larger one.
Jing Wang, Deputy Director of the XJTLU Learning Mall, showed how AI agents are already being used to support scheduling, meeting bookings, news updates and other administrative and learning tasks. She also announced that from this semester, all students would have access to the XIPU AI Agent platform.
Students and teachers are having a discussion at one of the booths
AI education system co-created by staff and students
The event’s AI interactive zone also drew significant attention from students and staff. From the Junmou AI platform to the E
-Support chatbot, and from AI-assisted creative design to 3D printing, 10 exhibition booths demonstrated the integration of AI across campus life.
These innovative applications sparked lively discussions and thoughtful reflections among participants. In an interview, Thomas Durham from IBSS noted that, although he had rarely used AI before, the event was highly inspiring and motivated him to explore its use in both professional and personal life. He also shared his perspective on AI’s role in learning, stating: “My expectation for the future of AI in education is that it should help students think critically. My worry is that AI’s convenience and efficiency might make students’ understanding too superficial, since AI does much of the hard work for them. Hopefully, critical thinking will still be preserved.”
Year One student Zifei Xu was particularly inspired by the interdisciplinary collaboration on display at the event, remarking that it offered her a glimpse of a more holistic and future-focused education.
Dr Xin Bi, XJTLU’s Chief Officer of Data and Director of the CKI, noted that, supported by robust digital infrastructure such as the Junmou AI platform, more than 26,000 students and 2,400 staff are already using the University’s AI platforms. XJTLU’s digital transformation is advancing from informatisation and digitisation towards intelligentisation, with AI expected to empower teaching, research and administration, and to help staff and students leap from knowledge to wisdom.
Dr Xin Bi
“Looking ahead, we will continue to advance the deep integration of AI in education, research, administration and services, building a data-driven intelligent operations centre and fostering a sustainable AI learning ecosystem,” said Dr Xin Bi.
By Qinru Liu
Edited by Patricia Pieterse
Translated by Xiangyin Han
Philippine businesses slow to adopt AI, study finds People Matters Global
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Remember a hologram of Tupac Shakur that made headlines back at Coachella in 2012?
It was a digital creation made to sing along on stage.
Now imagine a similar hologram, but one that can use artificial intelligence to bring us all the experience and knowledge in someone’s life — in this case, a well-known Silicon Valley venture capitalist.
“It’s going to change the way we think about the world, and we’ll evolve with it,” venture capitalist Tim Draper said.
A digital twin has been created of Draper. The so-called twin is a hologram using AI to scan everything about Draper.
The twin can answer questions in multiple locations at once and Draper’s twins are currently installed at Kennedy Airport in New York and at a Midwestern University.
Still, the twins have some learning to do as they still get the occasional question wrong.
The box holding one of the twins is reportedly about $100,000 each.
Draper is so known and regarded in tech circles that he has his own university, where the Silicon Valley venture capitalist now mentors young entrepreneurs.
One of the many things Draper has invested in deeply is AI after making a splash with some other big name investments like Tesla and Robinhood.
“You’re seeing the excitement period of an industry being created,” Draper said. “We’re in that period of elation. Where wow, it’s blowing my mind.”
Draper is now offering some very simple advice to young techies to make sure they have the right skills to stay employed in the shifting Silicon Valley landscape.
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