Larry Ellison: AI Models Flawed, Lack Differentiation; Oracle Focuses on Enterprise Data
Technology
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Moneycontrol•28-01-2026, 21:47
Larry Ellison: AI Models Flawed, Lack Differentiation; Oracle Focuses on Enterprise Data
- •Oracle CTO Larry Ellison states major AI models from OpenAI, Google, Meta, Anthropic, and xAI share a flaw: they are trained on identical public internet datasets, making them a commodity.
- •Ellison argues that this shared data foundation leads to similar model behavior, hindering differentiation and competitive advantage based solely on model improvements.
- •He believes the next AI growth phase will focus on securely integrating AI with private enterprise data, which Oracle aims to facilitate using techniques like retrieval-augmented generation.
- •Oracle is heavily investing in AI infrastructure, with projected capital expenditures of $50 billion, to build large-scale compute capacity for enterprise customers.
- •The company's strategy leverages its dominance in enterprise databases, aiming to connect AI to valuable private data, though challenges from rivals like AWS, Azure, and Google Cloud persist.
Why It Matters: Larry Ellison asserts AI models are commoditized by shared data; Oracle pivots to secure enterprise AI.
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