Oracle plans usage-based AI fees for enterprise software customers
Oracle plans to add usage-based AI charges to subscriptions for its enterprise applications, earning more when customers use AI to complete tasks without adding user seats. The move could increase customer bills as Oracle pursues rapid growth in AI and cloud services.
At its investor day, Oracle said it spent $55.7 billion on data centres and cloud infrastructure in fiscal 2026 and plans to spend $90 billion to $95 billion in fiscal 2027. It expects to raise about $40 billion through debt and equity in 2027, and is targeting $225 billion in revenue by fiscal 2030. Executives also said AI tools could speed up software implementation and cloud migrations, including for customers moving from on-premises systems.
In short
- Oracle plans to charge for AI usage alongside subscriptions.
- AI tasks could raise revenue without adding user seats.
- The company targets $225 billion in revenue by fiscal 2030.
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The case for
Usage-based AI fees could let customers pay in proportion to the work AI actually performs, rather than buying extra user seats, and could give them access to automation that saves staff time. Charging for usage may also help Oracle fund the substantial computing infrastructure needed to provide these services and support faster implementation and cloud migrations.
The case against
Adding usage charges to existing subscriptions could make customers’ bills less predictable and raise costs, especially if AI becomes embedded in routine tasks. Customers may also question paying more for capabilities they expected to be included, or find it harder to compare costs and plan budgets as their AI use grows.
Explained simply
Oracle sells business software for tasks such as finance, human resources and customer management, as well as cloud computing services that run software and store data. Its customers include large organisations, which often pay subscriptions based on how many people use an application.
AI features can carry out tasks within business software, potentially allowing a company to do more without adding user accounts. Charging according to use would give Oracle another way to earn money from those features, while making customers’ costs depend partly on how much they use them.
Oracle is investing heavily in data centres and other infrastructure to support cloud and AI services, and has set ambitious growth targets. Its plans matter to businesses weighing the cost of adopting AI tools and to investors assessing how Oracle expects those investments to generate revenue.
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Originally published by The Register as “Oracle wants to bill you for every AI task, not just every seat”.