Oracle's Larry Ellison Predicts 'Sovereign Clouds' to Revolutionize Government Operations

Oracle founder and former CEO Larry Ellison highlighted government collaborations as a major market opportunity in a March earnings call.

Ellison, the current chairman and chief technology officer, sees national and state governments using Oracle Cloud Infrastructure (OCI) in multiple roles.

"We talk about, you know, winning business with companies. For the first time, we're beginning to win business for countries," Ellison said, noting that Oracle is in talks with numerous governments to create autonomous zones driven by its cloud technologies, as reported by CNBC.

Experts Are Doubtful Over Ellison's Views

Tech companies fighting for government contracts is nothing new, but Ellison's comments indicate a trend. He sees a global need for sovereign clouds and specific government areas, highlighting OCI's importance in government operations.

Oracle's generative AI partnership with Nvidia and Microsoft increases its value. Ellison said that the OCI helped Albania meet EU regulations. Oracle used AI to interpret and match Albanian laws with EU rules faster than other countries.

Though Ellison seems hopeful, several experts express doubt over his viewpoint. Oracle's last earnings conference highlighted OCI growth concerns, suggesting market nervousness. Oracle's shares have steadily increased year-to-date, indicating market confidence.

Ellison said cloud services and AI might alter government operations, including disaster recovery, healthcare, and internet access. Serbia is using OCI and generative AI to automate healthcare and enhance agricultural planning, while Elon Musk's Starlink is funding rural internet access initiatives.

The drive toward cloud-based governance has concerns. The dependence on AI systems raises security and cyber threat issues. Critics warn against sacrificing governance and monitoring for technical efficiency, especially in nations with weak regulatory systems.

Oracle's vision shows how AI and cloud technologies may alter government services. The potential advantages are huge, but stakeholders must overcome hurdles to execute responsibly and securely.

Oracle Teams Up with Palantir

Oracle has not yet commented on Ellison's results-call assertions.

This development comes after Oracle and Palantir formed a strategic agreement to offer secure cloud and AI solutions to businesses and governments worldwide. According to the tech firm's media release, this cooperation uses Oracle's distributed cloud architecture and Palantir's premier AI and decision acceleration platforms to help enterprises maximize their data efficiency, sovereignty, and competitiveness.

Under this arrangement, Palantir will move Foundry workloads to Oracle Cloud Infrastructure. Oracle's distributed cloud will also offer Palantir's Gotham and AI Platforms in public cloud regions, Oracle Cloud Infrastructure Dedicated Regions, Oracle Alloy, Oracle EU Sovereign Cloud, Oracle Government Cloud, Oracle Roving Edge, and Oracle's air-gapped defense and intelligence regions.

This deal allows more companies to use Palantir's platforms for data integration and decision-making while using Oracle's cloud footprint and sovereign AI. The Palantir Artificial Intelligence Platform (AIP) lets enterprises safely use massive language models in their networks and core processes. This platform unifies data sources, logic assets, and action systems to improve decision-making.

Oracle's defense and intelligence expertise and Palantir's cutting-edge AI technologies promise significant capabilities for the defense industry and beyond.

Meanwhile, according to Arkadios Wealth Advisors' latest SEC filing, its Oracle Co. holdings increased significantly in the fourth quarter. The corporation bought 1,687 more shares in the corporate software vendor, increasing its holdings by 27.6%, per Defense World. Arkadios Wealth Advisors currently owns 7,804 Oracle shares, worth $823,000 at the end of the reporting period.