Oracle’s Larry Ellison Claims All AI Models Are Essentially Alike—Here’s Why
Larry Ellison, co-founder and CTO of Oracle, has raised concerns regarding the current state of popular large language models. According to Ellison, systems like OpenAI’s ChatGPT, Google’s Gemini, and Meta’s Llama share key weaknesses that hinder their differentiation.
Commoditization of AI Models
During Oracle’s fiscal Q2 2026 earnings call in December 2025, Ellison emphasized that most leading AI models rely heavily on the same dataset—the vast pool of publicly available information from the internet. He stated, “All the large language models—OpenAI, Anthropic, Meta, Google, xAI—they’re all trained on the same data. It’s all public data from the internet.”
- Key AI Models Discussed:
- OpenAI’s ChatGPT
- Google’s Gemini
- Meta’s Llama
- xAI’s Grok
- Anthropic’s Claude
Ellison warned that this commonality risks leading to a market where features and pricing converge, reducing the unique value propositions for users.
The Future of AI: Private Data
Looking ahead, Ellison sees a different path for AI’s growth. He proposes that the next significant advancements will emerge from leveraging private, proprietary enterprise data.
Opportunities for Breakthroughs
- Key Points from Ellison:
- The second wave of AI will be more impactful than the current generative AI boom.
- Oracle has inherent advantages in accessing high-value corporate data, offering a competitive edge in AI development.
He highlighted Oracle’s AI Data Platform, which utilizes methods like Retrieval-Augmented Generation (RAG) to enable real-time searches on private data while ensuring security.
Oracle’s Investment Strategy
To seize the emerging opportunities in AI, Oracle has ramped up its investments significantly. The company forecasts approximately $50 billion in capital expenditures for the fiscal year, an increase from $35 billion. Upcoming projects include:
| Project | Details |
|---|---|
| 50,000-GPU Supercluster | Powered by AMD MI450 chips, launching in Q3 2026 |
| OCI Zettascale10 Supercomputer | Links hundreds of thousands of NVIDIA GPUs |
By late 2025, Oracle’s cloud backlog exceeded $500 billion, driven by heightened AI demand from enterprises.
Competitive Landscape
Despite Oracle’s proactive strategies, Ellison acknowledges intense competition from other technology giants. Companies like Amazon Web Services, Microsoft Azure, and Google Cloud are rapidly enhancing their enterprise AI capabilities.
Additionally, innovations in synthetic data generation may challenge the reliance on proprietary datasets, further altering AI’s landscape.
In summary, Ellison’s insights underline the urgency for AI models to evolve beyond public data dependence, signaling a shift towards more personalized and secure enterprise-focused innovations.
