Oracle Q1 FY2026: what management said about AI

We think we are in a pretty good position to be a winner in the inferencing market because Oracle is by far the world's largest custodian of high-value private enterprise data.

Training AI models is a gigantic multitrillion-dollar market. It's hard to conceive of a technology market as large as that one. But if you look close, you can find one that's even larger. And it's the market for AI inferencing.

Management argued that customers wanted to combine private company data with public information while keeping the private data protected.

The proposed product would let a model reason over private company data and public data without making the private data public. That is Oracle's product claim, not an independently verified outcome.
For example: how might changing steel prices affect a company's quarterly results?

Management said it planned to demonstrate the product at Oracle AI World in October 2025.

In the end, all this money we're spending on training is going to have to be translated into products that are sold, which is all inferencing.

We can give you a private version of the Oracle Cloud with every feature, every security feature, every function, everything we do for $6 million. I think the cost for the other hyperscalers is more than 100x that.

We have large companies that are buying basically their own Oracle Cloud regions. In fact, multiple Oracle Cloud regions because they don't want to have any neighbors in their cloud. They don't want other companies in their cloud, but they want the full cloud. They want to pay as they consume, they want all the features, all the function, all the safety, the security. They don't want to have to buy it. They want us to buy and own the software and the hardware. They want us to maintain it, build the network to supply all of that, and they just want to pay for consumption.
We can do that at an entry-level price that's 1.0% of what our competitors can offer.

We're building application generators and then we're building the applications, which gives us insights to make the application generator better. It's a huge advantage to be on both sides of that equation.

CEOs, heads of state, heads of government say they want to use AI. We've never had consumers like that. Historically, we don't deal with CEOs. Now we deal with CEOs, heads of government and heads of state.

JPMorgan Chase/Goldman Sachs can't share all of its data with OpenAI.