Oracle $ORCL (+1,31%) has recently surprised many in the tech world with a big jump in its stock price. The shares rose 11 percent after the company reported solid earnings and announced a new partnership with Amazon Web Services. This news comes as Oracle's Cloud Infrastructure business is really taking off. It grew by an impressive 45 percent to reach $2.2 billion in revenue. Much of this growth is fueled by the rising demand for artificial intelligence and the need for companies to train their AI models.

Larry Ellison, Oracle's co-founder, shared some exciting insights during the earnings call. He believes that a few major tech companies and even some countries are gearing up for a fierce competition in AI. Each could potentially spend around $100 billion to claim the top spot. He reassured investors that the AI boom is not going anywhere anytime soon. He suggested that the next five to ten years will see continued growth in this area.

What is particularly interesting is that even other cloud giants are turning to Oracle for its AI capabilities. For example, Microsoft and OpenAI recently announced they would use Oracle's infrastructure for their AI workloads, despite having their own cloud services.

Oracle is also making bold moves in terms of infrastructure. The company is currently building an 800-megawatt data center packed with Nvidia GPU clusters. This facility will be used to train some of the largest AI models in the world. They are not stopping there. Oracle is already planning another data center that will require over one gigawatt of electricity, and they are looking into using nuclear power to meet that demand. This is a significant step, especially since current data centers typically use around 50 megawatts of power.In a recent announcement at the Oracle CloudWorld conference, Oracle and Nvidia revealed plans for the largest GPU compute cluster ever. This cluster is set to launch in the first half of 2025 and will feature up to 131,072 Nvidia Blackwell GPUs. This is six times larger than what other cloud providers currently offer. For context, Meta used just 16,000 GPUs to train its latest AI model.

For years, the public cloud market has been dominated by Microsoft, Amazon, and Google. Now Oracle is stepping into the ring. With its strong focus on AI and innovative infrastructure, it looks like Oracle is ready to compete and make a significant impact in the tech industry.