TechSep 10, 2025
The Quiet Database Powerhouse Flying Under Wall Street’s Radar Just Became AI’s Most Important Player
Infrastructure Pivot
Rhea Lobo
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Oracle spent years as the steady, somewhat boring database provider keeping the business world’s spreadsheets in order. But while flashier tech giants grabbed headlines with consumer apps and social platforms, Oracle quietly managed to power the unglamorous backend systems that actually keep corporate America running.
Ambitious foundations: Oracle’s latest quarterly report shows just how much its low-profile role has flipped. Revenue of $14.9B came in below expectations and adjusted earnings missed too — but investors looked past the top line once CEO Safra Catz revealed remaining performance obligations had soared 359% to $45B. In just three months, Oracle locked in four multibillion-dollar deals with OpenAI, Meta, and xAI, and unveiled a partnership on the Stargate project — repositioning the company as the critical infrastructure behind AI’s most ambitious bets.
Oracle’s strength comes from focusing on AI inference — the stage where trained models are actually used by millions of people — rather than just the training phase. On the earnings call, Ellison said “people are running out of inferencing capacity,” calling it “much larger than the training market.” By building specialized networks and teaming up with Nvidia for GPU access, the firm has become indispensable to AI companies needing massive computing power.
Staked out: Deutsche Bank’s Brad Zelnick confessed, “We’re all kind of in shock, in a very good way,” with some analysts raising price targets by 50% as Oracle proved it can stand toe-to-toe with tech’s biggest players. Oracle’s ambitious growth, however, comes at a cost — capex is set to hit $35B this fiscal year, turning free cash flow negative, as it races tech titans like Microsoft and Google in the AI infrastructure arms race. Now trading at 48x forward earnings and riding the AI wave, Oracle is being cast as “the new Nvidia” — for better or worse.
