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Oracle Larry Ellison

In an announcement that stunned both the tech and energy industries, Oracle’s co-founder and executive chairman, Larry Ellison, revealed ambitious plans to use nuclear power to advance artificial intelligence (AI) in Oracle.

At the Oracle Financial Analyst Meeting 2024, Ellison disclosed the company’s intention to build data centers powered by small modular nuclear reactors. This bold step signifies the fierce competition and massive costs required to advance AI technology in today’s era.

Ellison’s Bold Power Play — Nuclear Energy Fuels Oracle’s AI Ambitions

Oracle’s venture into nuclear energy underscores the extraordinary resource demands of cutting-edge AI.

According to Ellison, the power required for training frontier AI models is vast and extraordinary. The company plans to construct data centers with “acres” of GPU clusters, needing a gigantic energy supply to operate efficiently. Ellison’s strategy to utilize nuclear reactors ensures a steady, scalable power source to support these energy-hungry systems.

During the session, he spoke,

“If your horizon is over next five years, maybe even the next ten years I wouldn’t worry about it. This business is just growing larger and larger and larger. There is no slowdown or shift coming.”

The tech leader further stated that only a few major tech companies, and potentially even one nation, will compete for dominance in AI model development over the coming years. He emphasized that staying competitive in this high-stakes AI race will come with a hefty price tag.

Oracle’s choice to embrace nuclear energy marks a major change in how tech companies tackle their rising energy demands. Their strategy may inspire competitors to look for similar solutions, potentially transforming the future of both the tech and energy industries.


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The AI Arms Race and the $100 Billion Price Tag

Ellison made it clear that staying competitive in the AI race will not be cheap. He estimated that companies looking to build frontier AI models would need to invest around $100 billion over the next three to five years. The enormous investment reflects the exponential growth in computational power required to push the boundaries of AI capabilities.

This staggering price tag is a wake-up call for the tech industry, highlighting the capital-intensive nature of AI research and development. It’s a clear signal that the widening gap between bigger players and smaller players is evident, as only those with massive resources can afford to keep pace.

Oracle is not just talking about powering its data centers; it’s already laying the groundwork. He noted,  

“Today, Oracle has 162 cloud data centers, live and under construction throughout the world. The largest of these data centers is 800 megawatts, and it will contain acres of Nvidia GPU clusters able to train the world’s largest AI models”

This massive facility can support the development of advanced AI models, some of which Ellison hinted may surpass the capabilities of existing supercomputers, including xAI’s new supercluster, Colossus.

Building the Nuclear Infrastructure

Oracle is also planning a data center requiring over one gigawatt of electricity, that will rely exclusively on nuclear power. Ellison believes that much power is sufficient to meet the substantial processing needs of Oracle’s upcoming projects including creating Colossus.

Currently, the company has secured building permits for three small modular reactors, that estimate the scale of the project. Ellison’s description of the project’s complexity gives a glimpse into the enormous challenges that lie ahead for Oracle and other companies vying for AI dominance.

As the AI arms race intensifies, Oracle’s decision to integrate nuclear power into its infrastructure strategy could revolutionize how tech companies meet their energy demands. By securing a reliable and clean power source, Oracle is positioning itself as a leader in AI development, capable of tackling the massive computational requirements needed for training advanced models.

Tech leaders, industry pundits, and energy companies predict that more companies will explore novel energy solutions to keep pace with the rising demands of AI in the future. Whether it’s nuclear, renewable energy, or a hybrid approach, power consumption will become a defining factor in the race for AI supremacy.

Oracle’s Revenue Boom Fuels Ambitious Nuclear Investment

Oracle reported its fiscal 2025 Q1 results recently indicating strong growth. The company’s total quarterly revenues increased by 7% year-over-year in USD, reaching $13.3 billion, and rose 8% in constant currency. Cloud services revenues saw a 21% jump year-over-year in USD, climbing to $5.6 billion, with a 22% increase in constant currency. Additionally, cloud and on-premise license revenues grew by 7% in USD, hitting $870 million, and were up 8% in constant currency.

The company’s earnings are a clear reflection of what Larry hinted at—it’s truly a case of survival of the fittest. His announcement is not just a revelation of Oracle’s future plans but a signal for the entire tech universe.

His theory is straightforward: to compete, you must make bold moves, like investing in nuclear power for AI. Oracle’s approach highlights that success now demands major investments in both technology and energy. This way companies can secure their energy supply and seamlessly perform computational services.

Interestingly, it’s not just Ellison who is envisioning nuclear power. Bill Gates’s company TerraPower, is also constructing a Natrium reactor and energy storage system in Kemmerer, Wyoming. The project, which has secured substantial funding from the DOE and is set to be completed by 2030, will have a capacity of 500 megawatts.

Gates emphasized that this investment in nuclear is a significant step toward achieving safe, abundant, zero-carbon energy, and its success is crucial for America’s future.

Net Zero Plans and Carbon Emissions 

Oracle has set an ambitious target to reach net zero emissions by 2050 and reduce its greenhouse gas emissions to 50% including both operational and supply chain, by 2030 compared to a 2020 baseline. The sustainability report reveals that this target has been endorsed by the Exponential Roadmap Initiative, an accredited partner of the United Nations Race to Zero.

Moreover, the company has committed to achieving 100% energy usage from renewable sources for both its Cloud Infrastructure (OCI) and Real Estate & Facilities (RE&F) operations by 2025. Additionally, they aim to reduce waste to landfill per square foot by 33% and cut air travel emissions by 25% within this timeline.

Here’s a peek into their energy use and carbon emissions for 2022.

Oracle

source: Oracle

In conclusion, Oracle’s move into nuclear-powered data centers marks a pivotal step in AI development. This bold strategy highlights the immense resources needed to compete and suggests that tech companies must now innovate beyond software and hardware to lead in the AI race.

The post Larry Ellison’s $100 Billion Bet: Nuclear Power to Drive Oracle’s AI Revolution appeared first on Carbon Credits.

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Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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