US tech giant Oracle is sparing no expense as it dives headfirst into the realm of artificial intelligence (AI) by investing “billions” of dollars in Nvidia Corp’s chips.
The move is in line with the company’s aims to expand its cloud computing service, targeting the burgeoning wave of AI companies, Larry Ellison, Oracle’s founder and Chairman, revealed this week.
Seeking to gain an upper hand against formidable competitors like Amazon Web Services and Microsoft Corp, Oracle’s cloud division is focused on constructing lightning-fast networks capable of efficiently handling vast amounts of data required for AI systems, much like the sophisticated ChatGPT. To achieve this, Oracle is procuring copious amounts of graphics processing units (GPUs) specially designed to process the voluminous data in AI work.
In addition to Nvidia, Oracle is also funneling substantial funds into central processor units (CPUs) from Ampere Computing, a chip startup in which it has made strategic investments, and Advanced Micro Devices, Ellison announced at an Ampere event.
Ellison emphasised Oracle’s comprehensive approach by stating, “This year, Oracle will buy GPUs and CPUs from three companies. We will buy GPUs from Nvidia, and we’re buying billions of dollars of those. We will spend three times that on CPUs from Ampere and AMD. We still spend more money on conventional compute.”
In October, Oracle announced a long-term collaboration with Nvidia, which is aimed at enhancing its cloud infrastructure.
As part of the partnership, Oracle plans to integrate tens of thousands of Nvidia’s GPUs into its cloud infrastructure to expedite computing and drive advancements in the field of AI.
GPUs possess the ability to handle multiple tasks concurrently, making them highly valuable for applications such as machine learning, video editing, and gaming.
Nevertheless, Ellison clarified that Oracle’s expenditure will lean towards acquiring central processor units (CPUs) from Ampere Computing, an AI start-up, and semiconductor giant Advanced Micro Devices (AMD).
Just last month, Oracle unveiled its partnership with Cohere, an AI startup founded by former Google engineers. The collaboration entails Cohere offering its AI software, which runs on supercomputers housing up to 16,000 Nvidia chips per unit, within Oracle’s data centers.
Oracle’s robust investment in Nvidia chips aligns with the strategy adopted by other companies such as CoreWeave, which recently secured an impressive $200 million in funding. CoreWeave is also targeting AI-focused businesses with its cloud hardware heavily reliant on Nvidia chips.
As Oracle diligently expands its AI capabilities, fueled by substantial investments in Nvidia’s cutting-edge technology, it aims to solidify its position as a formidable force in the realm of cloud computing.
