Oracle expects its cloud infrastructure revenue to reach $166 billion by fiscal 2030, according to Co-CEO Clay Magouyrk, who shared the forecast on Thursday during a presentation to financial analysts. The bullish outlook helped push Oracle’s shares up 5% in trading.
Last month, Oracle revealed that it had secured hundreds of billions of dollars in infrastructure bookings and is collaborating with OpenAI, the creator of ChatGPT, on a $500 billion AI project that will involve the construction of five new data centers worldwide.
Magouyrk highlighted that during a 30-day span last quarter, Oracle Cloud Infrastructure (OCI) booked $65 billion in new commitments, including a $20 billion agreement with Meta Platforms. He emphasized that these bookings came from a variety of clients beyond OpenAI.
“Some people have asked if it’s just OpenAI driving growth,” Magouyrk said. “The truth is, OpenAI is a great customer, but we have many others. The $65 billion in new deals came from just seven agreements with four different customers, none of them OpenAI.”
Oracle also addressed investor questions about profitability, projecting adjusted gross margins between 30% and 40% for its AI cloud infrastructure services. The company expects those margins to remain stable throughout contract lifespans.
For example, Oracle demonstrated an AI infrastructure scenario showing around $6.4 billion in annual costs on a six-year, $60 billion cloud contract, underscoring consistent long-term profitability in its cloud business model.
