Why investors were interested in Oracle stock today

Tuesday, the king of the database Oracle (ORCL 2.59%)only for the first time, he was a stock market outperformer. The company’s shares rose nearly 3% on the day on a report of a potential major artificial intelligence (AI) tie-up with a top tech tycoon. That increase outpaced the nearly 1% gain of S&P 500 index of the day.

OpenAI and Oracle reportedly in talks for AI hardware

According to a report from the technology industry news site informationOpenAI, a leading developer of AI solutions, is discussing a deal with Oracle. Citing an “unnamed person who heard the remarks,” the former company’s management told certain employees that OpenAI “would play a bigger role in aligning data centers and AI chips” to advance the technology, rather than depending entirely by his partner. Microsoft to do this.

The article said that OpenAI is unhappy with the speed at which Microsoft is supplying it with servers. AI is resource intensive and requires significant amounts of processing power and storage. Microsoft is a major investor in OpenAI, pouring billions of dollars into the company.

Neither Oracle nor Microsoft or OpenAI have yet officially commented on this report.

It’s just speculation at this point

If the article is correct, Oracle is facing an interesting and potentially very profitable business opportunity with OpenAI (developer of the most well-known commercial artificial intelligence program, ChatGPT). If these talks are taking place, they are still in their early stages, and investors should not pile into Oracle stock on that basis alone.