Oracle’s shares have increased over 50% in 2023, the best year for shareholders since 1999, CNBC reported. On Wednesday (June 14), Oracle’s shares rose by 4.8% to $122.24 with stock up to 73% according to CNBC.
Bloomberg has now ranked Oracle’s founder, Larry Ellison, as the forth richest person in its billionaires index, surpassing Bill Gates.
Historically, the software developer fell behind its rivals, failing to meet modern-day enterprise demand.
But popularity among investors in generative artificial intelligence (AI) is responsible for Oracle’s most recent success. The US multinational holds a significant share in Cohere, a Canadian AI start-up focused on developing technology in power copywriting, search and summarization.
While Cohere is not a household name, it is rapidly becoming a rival to OpenAI. The start-up announced $270m in new capital as part of its Series C financing from an array of venture capitals and big tech names including Oracle, NVIDIA, Salesforce Ventures, and SentinelOne in June, 2023, according to Cohere.
“AI will be the heart that powers the next decade of business success,” said Aidan Gomez, CEO and co-founder. “As the early excitement about generative AI shifts toward ways to accelerate businesses, companies are looking to Cohere to position them for success in a new era of technology.”
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Oracle will use Cohere’s generative AI technology within its products, while Cohere will use Oracle’s cloud to train and deploy its generative AI models, Ellison said. Oracle customers can build their own generative AI apps without needing to share data thanks to Cohere’s technology.
However, Cohere’s contract with Oracle is not exclusive. Salesforce already uses Cohere’s chat capabilities a service as one of many AI tools it offers.