AI Inferencing Will Outpace AI Training -- Oracle CTO
Larry Ellison was bullish about the potential for AI inferencing to shape enterprise operations during Oracle's fiscal Q1 2026 earnings call this week.
The future of enterprise AI is evolving from training large language models using massive data sets to utilizing AI inferencing, the strategic deployment of pretrained models to deliver business value in real time.
So pronounced Oracle co-founder, chairman and CTO Larry Ellison at an earnings call this week that showcased the software company's pivotal transformation from legacy software and database company to a major cloud and AI infrastructure provider. Ellison's belief in the dominance of AI inferencing over AI training projects was backed by the company's record-breaking 455ドル billion in remaining performance obligations (RPOs), or backlog of contracts.
Total revenue for fiscal Q1 2026 was 14ドル.9 billion, up 12% from the same quarter a year ago. While slightly below analyst predictions, the revenue miss did not appear to dampen investor enthusiasm, with Oracle stock up 31% in after-hours trading.
For CIO clients of Oracle, the results provided ample proof of the vendor's long-term commitment to strategic AI, plus the buy-in from other Oracle customers, as evidenced by the massive RPOs. In addition, Oracle provided insight into how the company plans to deliver AI inferencing tools in a secure way and on how to use generative AI (GenAI) tools to improve productivity across enterprise operations while ensuring corporate data privacy -- a front-of-mind issue for CIOs.
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