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Oracle CEO Safra Catz says the company is adopting AI coding tools to accelerate SaaS development and engineering productivity
Tuesday, March 10, 2026 at 10:20 PM
Oracle is integrating AI coding tools across its engineering teams to accelerate SaaS development and improve engineering efficiency, countering theories that AI startups will disrupt established SaaS providers.
Context
During recent financial commentary, Oracle CEO Safra Catz dismissed the 'SaaS apocalypse' theory, asserting that AI will not kill established software firms that rapidly integrate the technology. Catz stated: 'I do think that AI tools and their coding capabilities would be a threat if we weren't adopting them, but we are, and very rapidly.' This strategic shift follows Oracle's recent fiscal 2025 Q2 results, which reported total revenue of $14.1 billion and a massive $97 billion in remaining performance obligations, up 49% year-over-year.
By utilizing AI code generation, Oracle is restructuring into smaller, more agile engineering teams to accelerate its $3.5 billion SaaS business. This pivot is critical as the company faces intense competition from AWS and Azure while managing a projected $50 billion capital expenditure for AI infrastructure. While the transition has pressured short-term free cash flow, the adoption of tools like the NetSuite Integration Platform and OCI Code Assist is intended to sustain high-growth segments like Fusion ERP, which recently grew 18%.
Sources (9)
Oracle - Investor Relations - Financials
Oracle Announces Fiscal 2025 Second Quarter Financial ResultsAI Code Assistants Explained—and One Tailored for Oracle Developers | ai-and-datascienceAI Innovation and Oracle IntegrationNetSuite Helps Organizations Reduce Application Integration Challenges with New AI-Powered PlatformOracle Corporation (ORCL) Earnings Call Transcripts - Discounting ...the magazine for enterprise applications and associated technologiesOracle Will Downsize Its Product Teams Because Of AI - Gizmodo
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