The future of enterprise AI is evolving from training large-scale language models using large datasets to utilize AI inference. This is a strategic deployment of a pre-defined model, providing business value in real time.
Oracle co-founder, chairman and CTO Larry Ellison pronounced this week's revenue call, showing off the pivotal transformation from software company legacy software and database companies to leading cloud and AI infrastructure providers. Ellison's belief in the advantages of AI reasoning around AI training projects was supported by our record-breaking $455 billion remaining performance obligations (RPOs), or contract backlogs.
Total revenue for the first quarter of 2026 was $14.9 billion, up 12% from the quarter a year ago. Though slightly below analysts' forecast, revenue errors did not appear to undermine investor enthusiasm, with Oracle increasing 31% in after-hours trading.
For Oracle's CIO clients, the results provided ample evidence of vendors' long-term commitment to strategic AI and buy-in from other Oracle customers, as evidenced by large RPOs. Additionally, Oracle has provided insights into how companies can provide AI inference tools in a secure way, and how to use Generated AI (Genai) tools to increase productivity across enterprise operations while ensuring corporate data privacy, the forefront of CIOs.
Why AI Inference Automates Enterprise Operations
“Oracle is clearly part of AI Gold Rush and is indirectly profiting from large AI vendors that are investing in all major cloud platforms. Having a seat at this table is important for Oracle's future.” InformationWeek.
Ellison explained that using AI inference will be used to place bets on robotic factories, biomolecular simulations for drug design, laboratory automation and financial markets. Furthermore, he predicts that AI reasoning will be used to automate the process of finance, legal and sales.
“AI is going to write about it. It's going to generate computer programs called AI agents that automate the sales and marketing processes,” Ellison said.
During AI training, the AI model is taught to identify patterns in the dataset. During the AI inference phase, “trained models apply these learning patterns to create predictions, generate content, and make decisions when they encounter new data that they were not visible previously.” According to TechTarget.
Recent Gartner Survey 95% of CIOs have revealed that generative AI (Genai) has important potential to improve organizations in the form of increased productivity, improved customer experience and supporting digital transformation.
“CIOs are increasingly responsible for Genai initiatives, with 48% of CIOs responding to surveys showing that they are heads of these initiatives,” according to a recent LinkedIn article. Louis Columbuscontributors to data center knowledge.
Ellison said the company is “actively pursuing” both AI training and speculation markets, explaining that Oracle is well positioned to do so as a “custodian of high-value private company data.” He added that the company has introduced a new AI database and the ability to understand enterprise customer data through AI models such as ChatGPT, Google Gemini, Grok and Llama. All of these are available on Oracle Cloud. For example, customers can access Oracle's AI database, access links to selected LLMs, and be sure to ask questions such as how tariffs affect a company's revenue.
Take a closer look at Oracle RPOS and Cloud Outlook
I'll take a closer look Oracle's first quarter revenueour remaining performance obligations (RPOS) represent unearned revenues from current customer contracts, but has now reached $455 billion to 359% (YOY) in both US dollars and certain currencies. Company stocks It rose sharply on Wednesday, up 33%.
“Oracle's first quarter revenue revealed strong growth in multiple ways, but the key point is a significant increase in the RPO contract backlog,” ESG practice director Scott Sinclair told InformationWeek. “The importance of data is often underestimated because it is so focused on AI-based infrastructure opportunities. Oracle's position as a database technology leader provides incredible strength as businesses continue to expand their AI operations.”
Oracle CEO Safra Catz said the high-RPO contract backlog was the result of achieving four multi-billion dollar contracts to three different customers during the first quarter. The Cats expect to sign a billion-dollar deal in the coming months, saying the company's RPO will be over $50 trillion.
The company's cloud business revenues rose 28%, up 27% in certain currencies to $7.2 billion in the first quarter. However, software units revenues fell to $5.7 billion, down 1% in USD and 2% in certain currencies.
“Revenue from Amazon, Google and Microsoft's Multicloud databases grew at an incredible rate of 1,529% in the first quarter,” Ellison said.
He added that he expects multi-cloud revenue to continue to grow significantly over the next few years.
“In the end, AI changes everything,” Ellison said during the revenue call. “AI is fundamentally converting Oracle and the rest of the computer industry right now, but not everyone has a full grasp of the tsunami reaching.”
