Oracle shares increased 13% on Tuesday (12 March) after the database giant posted a 25% jump in cloud revenue and rumours of partnership announcement with AI heavyweight NVIDIA emerged.
The US company has been focused on expanding its cloud infrastructure business to compete with Microsoft, Amazon and Google.
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Oracle CEO, Safra Catz, said Oracle’s sales backlog was $80bn at the end of the third quarter, a significant increase over analysts’ estimates of $59bn.
Catz said the backlog was driven by “large new cloud infrastructure contracts signed in the third quarter”.
The CEO said the company expects to continue to receive large contracts reserving cloud infrastructure capacity. Catz said Oracle was “very rapidly” opening new data centres to meet anticipated demand.
Oracle also gave rise to speculation about partnership with Nvidia, expected to be announced next week at Nvidia’s GTC developer conference.
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