The elevations underscore how Oracle is betting its future on cloud infrastructure, the business of building data centers that companies like OpenAI and Meta Platforms Inc. then use to deliver artificial-intelligence services to their customers. It has booked massive deals with such clients that will make the cloud division its largest unit by revenue in the coming years. It’s spending heavily to fulfill these commitments, and has seen its annual cash flow go negative for the first time since 1990.
Safra Catz, 63, who has led the company since 2014, will step back to become executive vice chair of the board. She expressed skepticism toward the cloud infrastructure business in OCI’s early days due to high costs of operating data centers and lower margins, Bloomberg has reported.
While tech companies rarely split responsibilities at the CEO level, Oracle has experience with this structure. Catz was promoted to co-CEO in 2014, alongside Mark Hurd. After Hurd died in 2019, chairman Larry Ellison said he didn’t plan to name a second CEO to work with Catz.
Though Magouyrk and Sicilia’s titles are the same, Magouyrk will be paid more. He will receive stock package worth $250 million, while Sicilia will receive one worth $100 million, the company said in a regulatory filing.
