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Oracle's latest earnings call has served as an eye-opener of sorts for AI skeptics, with the company taking pains to assert that the demand for data centers is still "outstripping supply." What's more, some of Oracle's upcoming facilities are truly mind-boggling, employing NVIDIA's GPUs at a scale that has never been seen before.

For the quarter that ended on the 31st of August, Oracle reported solid results a few hours back, managing to beat consensus expectations on both its top-line and bottom-line metrics. What's more the company's AI-critical cloud division recorded an year-over-year growth of 21 percent.

During the accompanying earnings call, Oracle wowed investors by noting that the demand for its products and services, particularly in the cloud sphere, was "still outstripping supply" and that the company was now trying to overcome this deficit by "laying out a lot of supply."

Apart from building a lot of data centers, Oracle is also rolling out services such as GenAI Agents, which combine Large Language Models (LLMs) with retrieval-augmented generation technology, allowing clients to directly interact with their cloud-stored data in new and innovative ways.

According to Oracle, building a foundational model such as ChatGPT or Google's Gemini from scratch will now cost $100 billion "over the next 4, 5 years."

Therefore, Oracle believes that the next big growth in AI-related spending will come from the inference process:

"So that goes on, and we'll see more and more applications look at that. So I wouldn't -- if your horizon is over the next 5 years, maybe even the next 10 years, I wouldn't worry about, hey, we've now trained all the models we need and all we need to do is inferencing. I think this is an ongoing battle for technical supremacy that will be fought by a handful of companies and maybe one nation state over the next 5 years at least, but probably more like 10. So this business is just growing larger and larger and larger. There's no slowdown or shift coming."

This growing demand paradigm is, of course, bullish for Oracle's medium-term prospects.

Also, Oracle has just announced a "zettascale" supercluster that "can scale up to 131,072 Blackwell GPUs with NVIDIA ConnectX-7 NICs for RoCEv2 or NVIDIA Quantum-2 InfiniBand networking to deliver an astounding 2.4 zettaflops of peak AI compute to the cloud."

This new supercluster is expected to come online by next year and will help clients train and deploy next-gen AI models.

Finally, do note that Oracle is planning to build as many as 2,000 data centers, constituting a phenomenal increase from its current capacity of 160! Also, one such facility will consume at least a "gigawatt" of power and will be powered by as many as three small-scale nuclear reactors (SMRs).