Oracle shares surged nearly 40% Wednesday – on track for its best day since 1999 – on jaw-dropping projections that the software giant will reap half a trillion dollars in the future from its AI business.

In the first quarter, Oracle signed four multibillion-dollar contracts with three separate customers, CEO Safra Catz said in an earnings release on Tuesday.

“We have signed significant cloud contracts with the who’s who of AI, including OpenAI, xAI, Meta and many others,” Catz said during a call with investors after the earnings report. 3

Those deals pushed Oracle’s Remaining Performance Obligations – or future revenue it will deliver based on contracts – up 359% to $455 billion.

Oracle expects to sign several more multibillion-dollar contracts, and for its RPO to exceed half a t

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