By Stephen Nellis and Harshita Mary Varghese
(Reuters) -Oracle expects cloud infrastructure revenue to be $166 billion in fiscal 2030, one of its two CEOs said on Thursday.
Chief Executive Officer Clay Magouyrk gave the prediction during a meeting with financial analysts, sending shares up 5%.
Oracle said last month that it has racked up hundreds of billions of dollars worth of infrastructure bookings and is working with ChatGPT creator OpenAI on a $500 billion project that will include five new data centers.
Magouyrk said that during a single 30-day period during the previous quarter, Oracle Cloud Infrastructure, the company’s cloud unit, had booked $65 billion in new commitments, which included a $20 billion deal with Meta Platforms. He said that the newest $65 billion of bookings came from customers other than OpenAI.
“I know some people are questioning, ‘Hey, is it just OpenAI?’ The reality is, we think OpenAI is a great customer, but we have many customers,” Magouyrk said. “This is literally seven deals, four customers, all of them other than OpenAI.”
Oracle also addressed questions about the margins associated with its revenue forecasts, saying it expected to have adjusted gross margins of 30-40% for delivering AI cloud computing infrastructure. Oracle also said that those margins would be steady over the term of a contract, showing a hypothetical example of an AI infrastructure rollout where the company would have about $6.4 billion of costs in each year of a six-year, $60 billion cloud contract.
(Reporting by Harshita Mary Varghese in Bengaluru and Stephen Nellis in San Francisco; Editing by Vijay Kishore and Mark Porter)
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