### Larry Ellison Predicts Governments Will Embrace ‘Sovereign’ AI Clouds

During a recent earnings call with Wall Street analysts, Larry Ellison, the chairman and chief technology officer of Oracle, emphasized the increasing demand for sovereign clouds by governments worldwide.

Oracle’s cloud technology has been instrumental in streamlining bureaucratic processes for Albania, leveraging ChatGPT to expedite the review of legal matters crucial to its European Union membership. Additionally, collaborations with Elon Musk’s Starlink have facilitated enhanced rural connectivity in various nations.

While governments are progressively embracing digital transformation, experts caution that certain critical functions such as defense, taxation, and healthcare should not be entirely automated despite the growing reliance on cloud services and artificial intelligence.

Larry Ellison highlighted the shift towards national and state government operations migrating to platforms like Oracle Cloud Infrastructure, marking a significant departure from traditional Fortune 500 clientele.

Ellison underscored the importance of securing business deals with countries, not just corporations, signaling a strategic focus on sovereign cloud regions tailored to meet national requirements.

Noteworthy is Oracle’s partnership with Nvidia and Microsoft to enhance generative AI capabilities, exemplified by its collaboration with Albania to align its legal framework with EU standards efficiently using AI technologies.

Ellison’s vision extends to innovative applications of cloud services and AI in diverse sectors such as disaster recovery, healthcare automation, and agricultural planning, underscoring the transformative potential of these technologies in government operations.

Despite the promising prospects, concerns loom over the potential risks associated with entrusting critical government functions to cloud-based AI systems, necessitating vigilant oversight to safeguard against vulnerabilities and data breaches.

The advent of generative AI poses both opportunities and challenges, with the need for enhanced governance and security measures to mitigate risks and ensure responsible deployment of these technologies in governmental settings.