Oracle changes leadership: Dual CEOs take office, current Catz transitions to vice chairman

Oracle announced on Monday that it has jointly promoted Clay Magouyrk, President of Cloud Infrastructure, and Mike Sicilia, President of Industry Applications, to co-CEOs. Current CEO Safra Catz will transition to the role of Executive Vice Chair of the company's Board of Directors.

At the same time, company founder Larry Ellison will continue to serve as Chairman of the Board and Chief Technology Officer. Media reports indicate that Ellison has been quite active outside the company in recent years. In August of this year, he invested to support the merger of Skydance Media with CBS News' parent company, Paramount Global. The merged company is led by his son David Ellison, who is reportedly considering acquiring Warner Bros. Discovery.

According to media reports, Oracle has become one of the biggest beneficiaries of the AI boom, thanks to its cloud infrastructure business and its acquisition of NVIDIA GPUs. Currently, Oracle is engaged in fierce competition with major cloud service providers such as Microsoft, Amazon, and Google.

As President of Cloud Infrastructure, Magouyrk led the development of the second-generation cloud platform; Sicilia is responsible for application businesses in vertical industries such as finance and retail. Ellison stated in a press release:

“A few years ago, Clay and Mike focused Oracle's infrastructure and application business on artificial intelligence, and we are now beginning to see results.”

“They are both proven leaders, and I look forward to working alongside them in the future. Oracle's prospects are bright.”

Analysts believe that while it is uncommon for two individuals to serve as co-CEOs, Oracle has had similar arrangements in the past. This appointment also allows the company to promote more mid-level managers, avoiding organizational stagnation. Insiders told the media that Magouyrk and Sicilia have stronger advantages in engineering and technology, while Catz excels in financial management.

Boosted by this news, Oracle's stock price rose over 5.4% during trading on Monday.

Accelerating AI Cloud Infrastructure Transformation

On Monday, Oracle highlighted its accelerated transformation towards AI-driven cloud infrastructure with the theme "AI Changes Everything" during a live broadcast.

This personnel adjustment comes after Oracle's strong financial report and record-high stock prices. Over the past month, Oracle's stock price surged 30% due to significant growth in AI-driven cloud business as indicated in its first-quarter financial report, with a cumulative increase of about 85% this year. The company also disclosed that its "remaining performance obligations" (unrecognized contract revenue) have increased to $455 billion, a staggering year-on-year increase of 359%.

On Monday, Oracle also reaffirmed its financial guidance. Catz stated in a press release:

"At a time when the company is experiencing strong growth, it is the best time to hand over the role of CEO to a new generation of capable management."

For decades, Oracle has relied on database software licensing for growth, providing applications and middleware. In the early 2010s, as Amazon entered the IT market with cloud services, Oracle began to build its own cloud platform. Initial responses were tepid, until the launch of its second-generation infrastructure in 2018, which gradually gained momentum, winning clients from emerging tech companies like Zoom.

After OpenAI launched ChatGPT in 2022, Oracle aggressively leased NVIDIA chips for training and running AI models, even securing business from competitor Microsoft. Recently, Oracle signed a five-year contract with OpenAI starting in 2027, with a total amount reaching up to $300 billion.

Catz's Departure Attracts Attention

Catz became co-CEO of Oracle in 2014 alongside Mark Hurd, following Ellison's resignation. After Hurd's death in 2019, Catz took sole control of the company. She joined Oracle in 1999, having previously worked as an investment banker at Donaldson, Lufkin & Jenrette for 13 years, and served as Oracle's CFO since 2005.

As one of only 55 female CEOs in Fortune 500 companies, her departure is noteworthy. Catz has maintained a close collaboration with Ellison: Ellison hosts weekly R&D meetings, while Catz handles more external affairs. Media reports indicate that she recently sold over $2.5 billion in stock, making this transition even more symbolic.

Ellison stated:

"Safra has led Oracle to become a hyperscale cloud service giant, which is clearly reflected in our recent performance. As Vice Chair, she and I will continue our 26-year partnership to jointly guide Oracle's direction, growth, and success."

Additionally, the company announced the promotion of two executives: North America Sales Executive Vice President Mark Hura will become President of Global Business, and Operations Executive Vice President Doug Kehring will serve as Chief Financial Officer