Oracle wants to bill you for every AI task, not just every seat

Oracle aims to generate additional revenue through AI usage in its enterprise software, expanding beyond the traditional subscription model. Speaking at the company's investor day, Chris Leone, executive vice president of application development, explained that the more AI operates within Oracle's systems, the more revenue the company will generate.

This usage-based approach eliminates the need for additional seats to boost earnings. Oracle recently unveiled Fusion Claw, a runtime designed to assist customers in managing AI agents for automating business processes in cloud-based Fusion applications, focusing on ERP, finance, and supply chain management. Customers will be charged for the increased work conducted within Oracle applications, with Fusion Claw extending this automation to processes outside of Fusion.

The move aims to reassure investors amid Oracle's investments in datacenters and cloud infrastructure, which have resulted in negative cash flow and increased borrowing. Oracle plans to allocate between $90 billion and $95 billion towards datacenters and cloud infrastructure in fiscal year 2027, necessitating additional debt. The company anticipates raising around $40 billion in debt and equity by 2027.

Oracle aims to grow its revenue to $225 billion by fiscal 2030, with a compound annual growth rate of 35 percent from 2026. Positive cash flow is expected by the second half of fiscal 2028, accompanied by a reduction in capital spending in the following year. Oracle's co-CEO, Mike Sicilia, emphasized that AI will facilitate software implementation, making it easier for on-premises customers to transition to the cloud and boosting revenue.