Wells Fargo’s Michael Turrin predicts significant growth for OpenAI, estimating its revenue could reach $10 billion by FY27 and soar to $78 billion by FY30. He emphasized that concerns regarding Oracle’s connections to OpenAI are overstated. Meanwhile, Oracle is making a strategic shift to a subscription-based cloud revenue model, which has led to a decline in gross margin from 75% to 64%. The company reported a substantial cash burn of $10 billion in the last quarter, highlighting the financial challenges during this transition. As Oracle continues to adapt its business model, the impact on its overall profitability and market competitiveness will be closely monitored. These developments underscore the significance of cloud computing and AI technologies in shaping the future of major tech companies. Stay updated on trends in AI and cloud solutions for insights into market dynamics and investment opportunities.
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