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AI's Growth Momentum Without Comparison, Says Heath Terry
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September 11, 2025
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3:14Now PlayingHeath Terry, Citi Head of Tech and Communications Research, discusses the momentum of AI investing.
Oracle Corp. shares gained the most since 1992 after the company gave an aggressive outlook for its cloud business, cementing the software maker’s place in the race to support demand for artificial intelligence computing.
The stock surged as much as 43% Wednesday in New York, bringing its market valuation to about $969 billion. The rally turned co-founder Larry Ellison into the world’s richest person, surpassing Elon Musk. AI-related stocks such as chip developer Nvidia Corp. and Asian suppliers also climbed.
Known for its database software, Oracle has recently found success in the red-hot cloud computing market and is emerging as a key provider of AI computing capacity, competing against cloud leaders Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google.
Bloomberg reported previously that Oracle signed a deal with ChatGPT operator OpenAI to supply 4.5 gigawatts’ worth of data center capacity — enough energy to power millions of American homes. The Wall Street Journal said Wednesday that the contract will be worth $300 billion over five years. Oracle also counts Nvidia and ByteDance’s TikTok as major cloud customers.
Read More: Oracle Rides Major Deals With OpenAI, Nvidia to Turn Around Cloud Business
Such deals helped boost remaining performance obligations — a measure of bookings — to $455 billion at the end of the fiscal first quarter, Oracle said Tuesday. That’s more than four times higher than the same period a year earlier. It’s also roughly four times Google’s backlog, according to Bloomberg Intelligence, suggesting Oracle’s cloud-growth rate is poised to surpass Google’s.
“It was an astonishing quarter,” and demand for Oracle cloud infrastructure continues to build, Chief Executive Officer Safra Catz said. The company signed four multibillion-dollar contracts with three different customers in the quarter and expects to sign up several additional customers in the coming months, she added, pushing remaining performance obligations above $500 billion.
The Federal Trade Commission ordered Alphabet Inc.’s Google, OpenAI Inc., Meta Platforms Inc. and four other makers of artificial intelligence chatbots to turn over information about the impacts of their technologies on kids.
The antitrust and consumer protection agency said Thursday that it sent the orders to gather information to study how firms measure, test and monitor their chatbots and what steps they have taken to limit their use by kids and teens. The seven companies include Google; OpenAI; Meta and its Instagram unit; Snap Inc.; Elon Musk’s xAI; and Character Technologies Inc., the developer of Character.AI.
Chatbot developers face intensifying scrutiny over whether they’re doing enough to ensure safety of their services and prevent users from engaging in dangerous behavior. Last month, the parents of a California high school student sued OpenAI, alleging that its ChatGPT isolated their son from family and helped him plan his suicide in April. The company said it has extended its sympathies to the family and is reviewing the complaint.
Under US law, technology companies are barred from collecting data about children under the age of 13 without parental permission. For years, members of Congress have sought to extend those protections to older teens, though so far no legislation has managed to advance.
The FTC is conducting the inquiry under its so-called 6(b) authority that allows it to issue subpoenas to conduct market studies. The agency generally issues a report on its findings after analyzing the information from companies, though that process can take years to complete.
Although the information is collected for research purposes, the FTC can use any details it gleans to open official investigations or aid in existing probes. Since 2023, the agency has been probing whether OpenAI has violated consumer protection laws with its popular ChatGPT conversational AI bot.
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