The Oracle Corporation and the Nvidia Corporation recently revealed their decision to expand their ongoing association by adding several thousand Nvidia chips in order to increase the AI computational capabilities of Oracle’s Cloud Computing platform. This expansion of their collaboration and partnerships comes right when the demand for AI models has become more complicated and ever-increasing number of companies are using AI, which has led the Oracle to ramp-up their investments in their data center infrastructure.
At the moment, details are scarce about the cost or count of the additional lot of Nvidia chips that will be supplied to Oracle. However, it is public that the chips being supplied are some of Nvidia’s most advanced offerings like the A100 and H100 GPUs. Just about a month back, the US had placed these exact chipsets on the export control list to China. This move was said to had potentially costed Nvidia upwards of $400 million in expected sales to China which could really dampen the Q3 earnings outlook of the chipmaker.
According to a report published recently, Nvidia’s market share of so-called accelerator chips within the infrastructure of the six largest clouds in the world increased to 85% as of August. GPUs are a type of chip that speed up computing, and Nvidia controls the lion’s share of this market. Even in the face of ever-increasing competition to Nvidia AI chips from new-age startups, Clay Magouryk, the in-charge of the company’s Oracle Cloud Infrastructure doesn’t consider newcomers as much of a challenge to the company’s business.
He said, “If you look at the pace at which Nvidia is innovating every 12 to 18 months, they come out with a platform that’s 10 to 50 times better. I believe that for someone to be able to attack that dominance, Nvidia is going to have to stumble.”
