Oracle To Spend “Billions” On NVIDIA’s AI Chips To Dominate The Industry
Cloud computing giant, Oracle, has disclosed plans to spend "billions" on NVIDIA's AI chips to power its cloud services.
Oracle's Chairman, Larry Ellison, revealed the information during a recent Ampere event. The company plans to "cash on" the AI hype through NVIDIA's much-hyped AI GPUs. Apart from NVIDIA, the company will acquire CPUs from Ampere and AMD, showing its intention to compete in the market. Oracle will spend "three times more" money on Ampere & AMD CPUs than NVIDIA GPUs.
Furthermore, the company's CEO ruled Intel out of the scenario, claiming that the Intel x86 architecture has become "old" and has reached its limits. The company is more attracted to building a partnership with AMD and Ampere. This is undoubtedly a blow for Intel, who has been a long partner of Oracle, dating back to 2008 when the first Exadata machine was released.
The company's motive behind this massive reform is establishing itself in the cloud computing market. When it comes to companies like Amazon and Microsoft, Oracle lacks behind, mainly due to less market presence since its competitors have a firm hold in the industry. However, in the fiscal year of 2023, things started to turn in Oracle's favor when the company revealed a record $50 billion in revenue (via CRN), claiming that its cloud offerings were superior to its rivals.
In October 2022, Oracle confirmed its plans to utilize several of NVIDIA's high-end A100 and H100 computing GPUs. This led to a concrete collaboration between the two firms, and it seems like Oracle is going one step forward this time. The company's CEO said that most GPUs would be acquired from NVIDIA, ruling out the possibility of any other vendor. A total of 16,000 NVIDIA AI GPUs are said to be installed in the
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