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Oracle Invests Billions in Nvidia and Ampere Chips to Strengthen Cloud Computing for AI

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Oracle Corporation is making significant strides in the field of artificial intelligence (AI) by investing billions of dollars in chips from Nvidia Corp and Ampere Computing. The move comes as Oracle’s cloud division seeks to gain ground against significant rivals like Amazon Web Services and Microsoft Corp in the burgeoning AI market.

With a focus on building fast networks capable of handling vast amounts of data required for AI systems, similar to advanced models like ChatGPT, Oracle is actively purchasing large quantities of graphics processing units (GPUs) from Nvidia. These GPUs are specifically designed to accelerate data processing for AI workloads.

Additionally, Oracle is investing substantial amounts in central processing units (CPUs) from Ampere Computing, a chip startup in which it holds an investment, and Advanced Micro Device Inc (AMD).

During an Ampere event, Oracle’s founder and Chairman, Larry Ellison, revealed the company’s plans: “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 computers.”

By leveraging these advanced chips, Oracle aims to enhance its cloud computing services and infrastructure to cater to the growing demand for AI capabilities. The investments in Nvidia and Ampere chips will provide Oracle with the necessary processing power and computational resources to deliver high-performance solutions for AI-driven applications.

In a strategic move last month, Oracle partnered with Cohere, an AI startup founded by former Google engineers. The collaboration involves Cohere offering its AI software, running on supercomputers with up to 16,000 Nvidia chips each, within Oracle’s data centers. This partnership further bolsters Oracle’s position in the AI market and strengthens its offerings to AI-focused enterprises.

Oracle’s commitment to investing in Nvidia and Ampere chips highlights its dedication to staying at the forefront of cloud computing and AI. With the AI market expanding rapidly, driven by advancements in machine learning and data analytics, Oracle aims to position itself as a formidable competitor by providing cutting-edge technologies and robust infrastructure to fuel AI-driven innovation.

As Oracle continues to allocate substantial resources to enhance its cloud computing services, it is poised to challenge industry giants and capture a significant share of the AI market.

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