Oracle, ChatGPT, and the Emergence of Sovereign Clouds

Oracle’s chairman and chief technology officer, Larry Ellison, has predicted that every government will want to build a ‘sovereign’ AI cloud in the future. This statement was made during a recent earnings call with Wall Street analysts. Oracle’s cloud technology has been part of an effort to cut red tape for Albania, which is using ChatGPT to speed the review of legal issues related to its ascension to the European Union. Oracle has also teamed up with Elon Musk’s Starlink internet service in multiple countries to increase rural access.

Ellison sees national and state government applications being run on platforms like Oracle Cloud Infrastructure to a much greater degree than today. He stated, “We talk about, you know, winning business with companies. For the first time, we’re beginning to win business for countries.” He further predicted that “Every government, pretty much every government, is going to want a sovereign cloud and a dedicated region for that government.”

Major tech companies vying for massive government contracts in the cloud are nothing new. Microsoft and Amazon had a lengthy battle over a cloud deal with the Department of Defense, and both those AI players as well as Oracle and Google ended up all in on a $9 billion DoD contract in 2022.

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