AI Deals and Earnings Paint Mixed Picture of Tech Transformation

In artificial intelligence (AI) news this week, new partnerships highlight intensifying competition in enterprise AI infrastructure.

Oracle’s cloud revenue surged 52% amid a Meta partnership, while C3 AI deepened its Microsoft alliance with a new multi-year deal that opens up direct access to the Azure marketplace.

ImmunoPrecise Antibodies also joined the AI push, showcasing its LENSai drug discovery platform despite flat quarterly revenues of $6.1 million.

Oracle Reports Surging AI Demand, Meta Deal

Oracle’s AI business saw dramatic growth last quarter, with GPU consumption up 336% as the company announced a new partnership to provide cloud infrastructure for Meta.

The Austin-based tech company reported on Monday (Dec. 9) that its cloud infrastructure revenue increased 52% to $2.4 billion for the quarter ended Nov. 30. Overall revenue rose 9% to $14.1 billion.

Under the Meta agreement, Oracle will provide cloud infrastructure and collaborate to develop AI agents using Meta’s Llama models. The company also said it’s deploying what it describes as the world’s largest AI supercomputer, with 65,000 Nvidia H200 GPUs.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” said Larry Ellison, Oracle’s chairman and CTO.

The results and Meta deal indicate Oracle is aggressively pushing into AI infrastructure, a market currently led by larger tech rivals. The company expects total cloud revenue to top $25 billion this fiscal year.

C3 AI Reports Strong Growth, Deepens Microsoft Partnership

C3 AI posted robust fiscal second-quarter results on Monday, reporting a 29% year-over-year revenue jump to $94.3 million as enterprises adopt AI solutions. The enterprise AI software company also announced an expanded strategic alliance with Microsoft that could accelerate its market penetration.

Under the new five-and-a-half-year partnership, C3 AI’s enterprise and generative AI applications will be available directly through Microsoft’s Azure marketplace and sales channels. Azure sales personnel will receive commissions, quota credits and special bonuses for C3 AI sales. The partnership leverages Microsoft’s enterprise licensing agreements with 95% of Fortune 500 companies, with Microsoft also agreeing to subsidize C3 AI pilots and production deployments through March 2030.

“It is difficult to overstate the potential of the Microsoft-C3 AI strategic alliance,” CEO Thomas M. Siebel said, noting that the partnership creates a “Microsoft-scale go-to-market engine” for enterprise AI adoption.

The quarter saw C3 AI close 58 deals, including agreements with major clients like ExxonMobil, Shell, Duke Energy and Boston Scientific. The company’s federal business also gained momentum, securing contracts with multiple U.S. defense and intelligence agencies. Additionally, C3 AI closed 15 generative AI pilots with various organizations.

While still operating at a loss, C3 AI reduced its GAAP net loss to $0.52 per share from $0.59 a year ago. The company raised its full-year revenue guidance to between $378 million and $398 million and ended the quarter with over $730 million in cash and marketable securities.

AI Drug Discovery Firm ImmunoPrecise Reports Flat Revenue

ImmunoPrecise Antibodies, a BioTech firm specializing in AI-driven drug discovery, on Tuesday (Dec. 10) reported flat quarterly revenue of $6.1 million as it announced plans to relocate its headquarters to Austin, Texas.

The company’s second-quarter losses widened to $2.6 million, or 9 cents per share, compared to $2.4 million, or 10 cents per share, in the same period last year. Research and development costs jumped to $1.2 million from $800,000 as the company invested in its LENSai platform.

“This quarter marks a pivotal chapter for IPA as we unveil our cutting-edge in silico drug discovery tools, designed to revolutionize the landscape of novel therapeutic development,” CEO Jennifer Bath said. “These advanced platforms offer unprecedented insights and precision, aimed at significantly reducing the time and cost associated with traditional drug discovery methods.”

During the quarter, ImmunoPrecise showcased its LENSai platform at industry events and demonstrated five new AI-driven analytical tools for drug discovery. The company expanded its partnerships, including a deal with BioNTech subsidiary Biotheus to develop AI-enhanced antibody treatments for cancer. It also collaborated with the Mayo Clinic on anti-aging research, developing antibodies targeting markers linked to neurodegenerative diseases like Parkinson’s and Alzheimer’s.

The company’s cash was $3.53 million, compared to $3.46 million at the end of April. ImmunoPrecise trades on the Nasdaq under the ticker IPA.

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