Oracle Allocating Billions on Nvidia Chips This year Says Chairman Larry Ellison By CIOTechOutlook Team

Oracle Allocating Billions on Nvidia Chips This year Says Chairman Larry Ellison

CIOTechOutlook Team | Thursday, 29 June 2023, 05:06 IST

As per Oracle Corp. founder and chairman Larry Ellison, the company is investing "billions" of dollars in Nvidia Corp. chips as it grows a cloud computing service aimed at a new generation of artificial intelligence (AI) startups.

The cloud subsidiary of Oracle is attempting to gain ground on more powerful competitors like Amazon Web Services and Microsoft Corporation. Oracle has concentrated on developing quick networks that can move the enormous quantity of data required to produce AI systems comparable to ChatGPT around to gain an advantage.

Additionally, Oracle is investing heavily in the graphics processing units (GPUs) needed to analyse that data for use in AI projects.

According to Ellison during an Ampere event, Oracle is also spending "billions" of dollars on Nvidia processors but even more on central processor units (CPUs) from Ampere Computing, a chip company in which it has invested, and Advanced Micro Device Inc.

"This year, Oracle will buy GPUs and CPUs from three companies," Ellison said. "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."

Earlier this month, Oracle said that it had reached an agreement with Cohere, an AI startup created by former Google engineers, under which Cohere will make its AI software available for use on supercomputers inside Oracle data centres that contain up to 16,000 Nvidia chips each.

With cloud technology that extensively utilises Nvidia CPUs, other businesses like CoreWeave, which earlier this year acquired a new $200 million in funding, are also going after AI startups.