The recent rise in Oracle stock reflects an acceleration in the company’s public cloud business, driven in part by its strong position serving companies developing generative AI applications. But Oracle hasn’t said much about how it plans to incorporate generative AI into its enterprise applications.
until now.
In a press release on Tuesday highlighting all of its AI initiatives, Oracle (NASDAQ: ORCL) revealed plans to add generative AI across its portfolio of applications. In particular, Oracle provided the latest details on a new partnership with Canadian company Cohere, which competes with OpenAI, Anthropic and other emerging AI software business leaders.
Oracle said Cohere’s large-scale language models will be integrated directly into Oracle’s cloud applications. “By embedding Cohere’s language models into its business applications, … Oracle enables customers to quickly and safely deploy generative AI,” the company said.
The company plans to add generative AI capabilities not only to its flagship enterprise resource planning software, but also to applications in human resources, supply chain management, and customer experience management.
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Oracle also says Cohere “trains, builds and deploys generative AI models” on Oracle Cloud, which equates to strong support from industry leaders. The company said on Monday’s earnings call that it has pledged more than $2 billion from AI companies to use Oracle Cloud.
Meanwhile, Oracle announced that it is also investing in Cohere, along with Salesforce Ventures and Nvidia.
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Clay Magouyrk, executive vice president of the Oracle Cloud business, said in a release that the partnership with Cohere “will enable our customers to easily incorporate generative AI into their businesses.” He said that using Cohere’s underlying models, “customers can securely incorporate their own data to train specific models and deploy them on best-in-class AI infrastructure through OCI.” [Oracle Cloud]And immediately experience the business benefits of your application. “
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The announcement comes a day after the company reported better-than-expected fourth-quarter results.
Oracle shares were trading at an early high of $123.99, but were up 1.4% to $118.07 in the early afternoon.
Email Eric J. Savitz (eric.savitz@barrons.com).
