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Oracle's Larry Ellison believes the AI contention is becoming a commodity owed to shared net data. He argues the aboriginal lies successful leveraging backstage endeavor data, a determination Oracle is heavy investing successful with monolithic infrastructure plans. While competitors are besides gathering endeavor AI, Oracle's existing database dominance could beryllium cardinal to its occurrence successful this adjacent AI wave.
Oracle cofounder and CTO Larry Ellison has enactment his digit connected what helium sees arsenic the fatal flaw successful today's AI race: each large model, from ChatGPT to Gemini to Meta's Llama, is trained connected fundamentally the aforesaid publically disposable net data.
During Oracle's fiscal Q2 2026 net telephone successful December, Ellison argued this shared instauration is rapidly turning cutting-edge AI into a commodity merchandise with razor-thin differentiation."All the ample connection models—OpenAI, Anthropic, Meta, Google, xAI—they're each trained connected the aforesaid data. It's each nationalist information from the internet," Ellison said. "So they're each fundamentally the same. And that's wherefore they're becoming commoditized truthful quickly."
The existent wealth is successful backstage data, not nationalist models
Ellison's solution? The adjacent golden unreserved won't beryllium gathering amended foundational models—it'll beryllium enabling AI to enactment with proprietary endeavor information portion keeping it secure. He estimates this 2nd question of AI volition beryllium "even larger and much valuable" than the existent roar successful GPUs and information centers.Oracle is betting heavy connected this vision, projecting astir $50 cardinal successful superior expenditures for the afloat year, up from $35 cardinal estimated conscionable 3 months earlier.
The institution argues it has a earthy vantage since astir high-value backstage information already lives successful Oracle databases. Its AI Data Platform uses techniques similar Retrieval-Augmented Generation to fto models query backstage accusation successful existent clip without information compromises.
Oracle's monolithic AI infrastructure stake faces stiff competition
The institution announced partnerships astatine Oracle AI World successful October, including a 50,000-GPU supercluster with AMD MI450 chips launching successful Q3 2026 and the OCI Zettascale10 supercomputer connecting hundreds of thousands of NVIDIA GPUs.
By precocious 2025, Oracle's unreality backlog had topped $500 billion, driven mostly by AI demand.Still, Ellison's thesis faces headwinds. Synthetic information procreation could trim reliance connected exclusive proprietary datasets, portion rivals similar Amazon Web Services, Microsoft Azure, and Google Cloud are racing to physique akin endeavor AI capabilities. The question is whether Oracle's existing grip connected endeavor databases volition beryllium decisive—or if the AI scenery volition displacement earlier the company's monolithic infrastructure bets wage off.
