ISTANBUL

Oracle shares jumped to an all-time high level Tuesday, a day after the US-based global computer tech company said artificial intelligence (AI) firms want to buy over $2 billion worth of cloud capacity.

Stock price of Oracle climbed to as high as $123.95 per share at 9.30 a.m. EDT market opening, with a gain of 6.4% from the previous day's close of $116.48.

Chairman and CTO Larry Ellison said cutting edge companies doing LLM development, such as Mosaic ML, Adept AI, Cohere plus 30, and other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle's Gen2 Cloud.

"Oracle's Gen2 Cloud has quickly become the number 1 choice for running Generative AI workloads," Ellison said in the financial results statement. "Why? Because Oracle has the highest performance, lowest cost GPU cluster technology in the world."

LLM, or a large language model, is a type of AI algorithm that uses deep learning techniques and large data sets to understand and generate new content.

"Oracle's revenue reached an all-time high of $50 billion in FY23," said CEO Safra Catz. "Annual revenue growth was led by our cloud applications and infrastructure businesses which grew at a combined rate of 50% in constant currency."

Revenues from cloud services and license support jumped 23% to $9.37 billion for the three months ending May 31, from $7.61 billion the same period of last year, according to the statement.