Oracle's Cloud Revenue Falls Short of Expectations

Oracle's first-quarter revenue fell slightly below estimates as businesses reduced cloud spending due to a tough economy, causing the company's shares to drop by 9% in extended trading. Despite facing competition from larger rivals like Amazon Web Services and Microsoft, Oracle's advances in networking technology make it well-suited for AI workloads, potentially boosting its cloud infrastructure business. Oracle Chairman Larry Ellison announced that AI development companies have signed contracts worth over $4 billion for Oracle's Gen2 Cloud, and Tesla CEO Elon Musk's AI startup xAI has also signed a contract with Oracle. Oracle expects second-quarter revenue growth of 5-7%, lower than analysts' estimates, and reported adjusted earnings of $1.19 per share, slightly above expectations.