Oracle Projects $166B Cloud Revenue by 2030, Eases AI Margin Concerns
Oracle shares surged 5% after unveiling ambitious financial targets for its AI-driven cloud infrastructure unit. Co-CEO Clay Magouyrk forecasts Oracle Cloud Infrastructure will generate $166 billion by 2030—$22 billion above prior projections—as part of $225 billion in total company revenue.
The company addressed margin concerns head-on, citing a 35% gross margin target for a flagship $60 billion AI project. This rebuts recent reports suggesting GPU rental margins languished in the mid-teens. Oracle's bullish outlook reflects its intensifying competition with AWS and Microsoft Azure in the AI infrastructure arms race.