Cloud computing giant, Oracle, has disclosed plans to spend "billions" on NVIDIA's AI chips to power its cloud services.
Oracle to Expand Partnership With NVIDIA Through Acquiring "Billions" In AI Chips
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 latest cloud data centers by Oracle.
It seems like what Oracle is doing here will change the dynamics of the cloud computing industry. With huge revenues and superior cloud vendor offerings, it won't be long before the company overtakes Amazon & Microsoft.
News Source: Reuters
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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