Oracle Corporation, a leading player in cloud computing, has revealed plans to invest “billions” in NVIDIA AI chips to power its cloud services.
Oracle Chairman Larry Ellison shared this information at a recent Ampere event. The company plans to use the AI capabilities provided by accelerators from NVIDIA. In addition to NVIDIA, Oracle plans to acquire processors from Ampere and AMD, indicating its desire to compete in the market with a wide range of hardware. At the same time, Oracle plans to spend “three times more” money on Ampere and AMD processors than on NVIDIA GPUs.
Also, the company’s CEO kicked Intel out of the game, arguing that the Intel x86 architecture was outdated and had reached its limit. The company is more attracted to the idea of partnership with AMD and Ampere. This is a blow to Intel, which has been an Oracle partner for a long time.
The main motive of the company is to establish itself in the cloud computing market. Compared to companies such as Amazon and Microsoft, Oracle is lagging behind, mainly due to smaller market coverage due to the strong position of competitors. However, in fiscal year 2023, the tide began to turn in Oracle’s favor when the company posted record $50 billion in revenue, claiming its cloud offerings outperform the competition.
In October 2022, Oracle confirmed its plans to use several A100 and H100 high-performance computing GPUs from NVIDIA. This has led to a stronger collaboration between the two companies, and it looks like Oracle is about to take it one step further. The company’s CEO said that most of the GPUs will be purchased from NVIDIA, eliminating the possibility of choosing another supplier. Oracle’s latest cloud data centers are expected to have a total of 16,000 AI chips from NVIDIA installed.
In all likelihood, this plan by Oracle will change the dynamics of the cloud computing industry.
2023-07-02 15:00:00
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