Oracle Expands Cloud Computing Services with Billions of Dollars Investment in Nvidia Chips for AI Applications

(CTN News) – Under the leadership of its founder and Chairman Larry Ellison, Oracle Corporation is intensifying its efforts to compete with major cloud services providers like Amazon Web Services and Microsoft Corp.

Oracle is making substantial investments in cutting-edge technologies to gain a competitive advantage. One of its key focus areas is expanding its cloud computing service by adopting artificial intelligence (AI) capabilities similar to ChatGPT’s.

To support this initiative, Oracle has committed to spending billions of dollars on chips from Nvidia Corp, renowned for their graphics processing units (GPUs) designed to accelerate AI workloads.

Expanding Cloud Infrastructure:

Oracle’s cloud division recognizes the significance of establishing fast and efficient networks capable of handling the enormous volumes of data required for AI systems.

By harnessing the computational power of GPUs, Oracle aims to enhance its cloud infrastructure’s capabilities and deliver exceptional AI-driven services.

In addition to Nvidia’s GPUs, Oracle procures central processor units (CPUs) from Ampere Computing, a chip startup it has invested in, and Advanced Micro Devices Inc (AMD).

This multi-vendor strategy underscores Oracle’s commitment to leveraging a diverse range of high-performance computing resources to effectively meet its customers’ demands.

Strategic Partnerships:

Oracle has struck partnerships with notable AI startups to bolster its AI capabilities. For instance, Oracle recently collaborated with Cohere, a startup founded by former Google engineers, to integrate Cohere’s AI software with Oracle’s data centers.

This collaboration will involve deploying supercomputers equipped with Nvidia chips, enabling Oracle to leverage its processing power for AI workloads. Each supercomputer could accommodate up to 16,000 Nvidia chips, enabling Oracle to deliver highly performant AI services to its clients.

Industry Competition:

Oracle’s investment in Nvidia chips aligns with the industry trend of leveraging GPU acceleration for AI applications. Companies like CoreWeave, backed by a recent funding round of $200 million, also target AI-focused enterprises by offering cloud hardware heavily reliant on Nvidia chips.

However, Oracle’s commitment to investing in GPUs and CPUs from multiple vendors demonstrates a comprehensive approach to scaling its cloud computing services and catering to a broader spectrum of customer needs.

Conclusion:

With Larry Ellison at the helm, Oracle Corporation is making significant strides in expanding its cloud computing services and strengthening its foothold in the AI market.

By investing billions of dollars in Nvidia chips and partnering with AI startups, Oracle aims to deliver cutting-edge AI-driven solutions to its customers.

These strategic initiatives position Oracle as a formidable competitor in the cloud computing landscape as it seeks to outpace larger rivals and establish itself as a leading provider of AI-powered cloud services.