Oracle's AI Surge: The Billion-Dollar Cloud Race

Oracle's shares took a minor hit on Thursday after a historic surge fueled by substantial gains in its AI cloud business. The company's rise, propelled by multi-billion-dollar cloud deals, highlights the intense competition for computing power among businesses aspiring to lead in the AI sector.

According to Richard Hunter, head of markets at Interactive Investor, Oracle has invigorated the AI trade, leading to a ripple effect across AI-related stocks. A notable $300 billion agreement with OpenAI, one of the largest in history, is expected to significantly contribute to Oracle's newfound revenue.

Despite a 2.2% decline in early trading, Oracle's valuation reached $933 billion, with its stock performing exceptionally well this year, outstripping gains by leading S&P 500 stocks. Co-founder Larry Ellison's net worth soared, owing to his substantial Oracle stake, making notable comparisons with other tech billionaires.

(With inputs from agencies.)