Oracle’s cloud infrastructure sales are projected to jump 77% to $18 billion this fiscal year due to increasing AI demand, up from the previous forecast of over 70%. The company saw a surge in shares after adding new clients and revealed plans for an AI Database service to support future growth.

Shares of Oracle soared over 25% in late trading as the company reported strong quarterly results and updated its cloud infrastructure sales outlook. CEO Safra Catz predicts potential sales of $144 billion over the next four years, fueled by booming AI demand and new multi-billion-dollar contracts.

Oracle posted adjusted earnings per share of $1.47 in the first quarter, slightly below analysts’ estimates, with revenue rising 12% year-over-year to $14.9 billion. The company attributes its more optimistic forecast to a growing backlog from new contracts and plans to provide further financial details at an upcoming event next month.

Co-founder and CTO Larry Ellison announced Oracle’s new “AI Database” service, allowing customers to utilize top AI models like OpenAI’s ChatGPT and Google’s Gemini for data analysis. He anticipates significant cloud demand growth driven by AI offerings, stating that “AI changes everything” for the company’s future prospects.

Read more at Yahoo Finance: Oracle Had a ‘Brilliant’ Quarter, CEO Says. Its Stock Is Popping on AI Demand