Oracle's stock experiences a 10% increase due to increased demand for AI, as well as new partnerships with Google and OpenAI.

• On Wednesday, Oracle's stock price dropped, following the company's announcement of its fourth-quarter results which revealed a robust RPO backlog.
• The company anticipates receiving $98 billion in revenue from future contracts, as reported in its RPO.
• The backlog is mainly due to the high demand for using Oracle's cloud to train AI models, as stated by CEO Safra Catz.

On Wednesday, the software company's shares experienced a more than 10% increase in value, following the announcement of its fourth-quarter results and cloud partnerships with OpenAI and .

Oracle's revenue for the quarter was $14.29 billion, up 3% year over year, but fell short of the $14.55 billion analysts expected, according to LSEG. The company's adjusted EPS came in at $1.63, which was below the $1.65 analysts had predicted.

In the fourth quarter, Oracle reported $98 billion in remaining performance obligations (RPO), which represents the revenue the company expects to receive from contracts in future quarters. CEO Safra Catz stated that the company signed large sales contracts in the third and fourth quarters due to demand for Oracle's cloud services to train artificial intelligence models, as per a release.

Oracle announced it is partnering with Microsoft and OpenAI to provide additional computing capacity for startups, and also revealed it is bringing its database to Google Cloud.

Oracle's sluggish revenue for the fourth quarter was offset by "tremendous RPO bookings growth," according to analysts from Citi. However, they noted that it is difficult to ignore the $98 billion outstanding backlog and would like to see better signs of how it will convert directly to revenue.

In a note on Tuesday, the analysts stated that the results were a mix when viewed from a distance.

Oracle's "extraordinary sequential backlog growth of $18 billion" is the highlight of its results, according to UBS analysts. However, they note that the company missed some "key" metrics. Another investor agrees that this quarter's results reflect more of a narrative story than a numbers story.

They noted on Wednesday that the AI narrative has the strength to elevate sentiment.

UBS reiterated its buy rating on the stock.

Oracle's quarter was mixed, but the "near term AI build-out likely wins the day and sustains momentum in shares. However, Morgan Stanley analysts still have longer-term questions about the nature of the contracts Oracle is booking, and what the gross margin implications will be.

Oracle is likely to be more closely watched by investors as vendors involved in the development of GenAI infrastructure, due to the company's impressive bookings and the addition of a high-profile customer like OpenAI, analysts wrote in a note on Wednesday.

--CNBC's Michael Bloom and Jordan Novet contributed to this report