Seeking Alpha’s roundup of statements, announcements and remarks that could impact the technology sector.
- Oracle (NYSE:ORCL) said its AI infrastructure projects can generate gross margins of around 35%.
At its Oracle AI World conference in Las Vegas on Thursday, Oracle used a six-year, $60 billion AI infrastructure project as an example of one that would achieve a gross margin of 35%, according to Bloomberg.
Oracle signed a $300 billion, five-year AI cloud contract with OpenAI (OPENAI) in September.
- Oracle (NYSE:ORCL) also confirmed that it now has Meta (NASDAQ:META) as an AI infrastructure customer, according to CNBC.
Oracle Co-CEO Clay Magouyrk told analysts at the company’s Las Vegas event that in 30 days during the quarter, the company contracted $65 billion in new AI cloud infrastructure commitments, according to CNBC.
“It was across seven different contracts from four different customers,” Magouyrk said. “None of those customers are OpenAI. I know some people are questioning sometimes, ’Hey, is it just OpenAI? The reality is, we think OpenAI is a great customer, but we have many customers.”
Magouyrk confirmed that Meta (NASDAQ:META) was one of the four customers.
- A leading congressman is questioning whether TikTok should be allowed to license its algorithm from China’s ByteDance (BDNCE) after its U.S. assets are sold later this year.
“I think anytime you have [China] with leverage over the algorithm, I think that’s a problem,” said Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on China, according to Reuters.
“I just believe you have to have a new algorithm, and I don’t know that you can reprogram,” Moolenaar added.
Last month, the Trump administration announced that TikTok’s U.S. assets would be sold to a group of primarily American investors. As part of the deal, U.S. TikTok would license its algorithm from ByteDance. The algorithm would then be retrained and managed by Oracle (ORCL).
ByteDance has until Jan. 20 to sell TikTok’s U.S. assets or risk having the social media site shut down, Reuters added.