Investing.com — Amazon (NASDAQ:AMZN) stock declined as much as 3% Wednesday morning despite strength in the Nasdaq, as concerns mounted over market share losses to Oracle (NYSE:ORCL) in the artificial intelligence space.
The e-commerce and cloud computing giant’s shares dropped while Oracle’s stock surged 40% following its impressive quarterly results. Oracle’s neutral position in the AI market appears to be a key competitive advantage over Amazon Web Services (AWS).
Unlike some competitors, Oracle isn’t developing proprietary large AI models that might compete with potential clients. This neutrality has enabled Oracle to forge partnerships with major tech companies including Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL), and Amazon itself, allowing Oracle’s databases to run in their cloud environments.
Oracle’s client roster includes Meta Platforms (NASDAQ:META) and Elon Musk’s xAI, companies looking to challenge established tech giants in the AI space. As the AI industry shifts from model training to inference—generating results from established models—Oracle appears well-positioned with its new database that connects leading AI models to private data.
Cleveland Research highlighted this competitive dynamic, noting that “Market share feedback continues to favor MSFT, GOOG, and ORCL while AMZN appears to be underperforming.” The analysts added that Oracle “appears best positioned for large AI training and sovereign cloud deals” while Amazon partners “appear to be tracking more in-line with targets.”
The research firm attributed Amazon’s relative underperformance to increased multi-cloud adoption, a lagging position in AI, and greater focus on existing infrastructure modernization projects.
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