Oracle Corporation (NYSE:ORCL) Q2 2024 Earnings Call Transcript

So as I think I’ve hinted and we’re talking about demand, had we had capacity this quarter in the hundreds of millions of dollars more that was just sitting there waiting to take it, and we had made some deployment choices because we need more and we need it bigger, instead of taking small pieces or smaller pieces, we decided to focus on the bigger parts and try to also treat our customers fairly and work with them to meet their needs.

Larry Ellison: Let me give you one example of that, what Safra is describing, is we got enough Nvidia GPUs for Elon Musk’s company xAI to bring up the first version, the first available version of their large language model called Grok. They got that up and running. But boy did they want a lot more. Boy did they want a lot more GPUs than we gave them. We gave them quite a few, but they wanted more and we are in the process of getting them more. So, the demand, we got that up pretty quickly. They were able to use it, but they want dramatically more. There’s this gold rush towards building the world’s greatest large language model. And we are doing our best to give our customers what we can this quarter, and then dramatically increase our ability to give them more and more capacity each succeeding quarter.

Brad Zelnick: Thanks very much.

Ken Bond: Thank you, Brad. A telephonic replay of this conference call will be available for 24 hours on our Investor Relations website. Thank you for joining us on the call today. And with that, I’ll turn the call back to Emma for closing.

Operator: This concludes today’s conference call. Thank you for attending. You may now disconnect.