Oracle Corp’s founder and chairman Larry Ellison revealed on Tuesday that it has spent billions purchasing chips from Nvidia Corp as it expands a cloud computing service targeting artificial intelligence companies, specifically OpenAI ChatGPT systems like OpenAI’s ChatGPT. As part of its plans to take on Amazon Web Services and Microsoft Corp for artificial intelligence work, it has invested heavily in rapid networks capable of processing large volumes of data quickly – as well as investing heavily in graphics processing units designed specifically to crunch it all down for AI work.
Integrating Nvidia’s cutting-edge chips into its infrastructure enables it to run its systems more quickly and efficiently, while simultaneously giving Nvidia an impressive customer and demonstrating the value of its technology in AI and GPUs.
Oracle is undertaking this initiative as part of an overall effort to bolster its database capabilities in order to compete more effectively against larger rivals in the cloud computing industry. By taking advantage of Nvidia’s powerful graphics processing units for faster performance and enhanced AI features, they aim to deliver an improved customer experience in various industries.
As part of this initiative, both companies will join forces on Project Brainwave – a deep learning project designed to create a virtual assistant to assist with data management and analytics tasks within Oracle databases. The virtual assistant will use natural language queries as well as videoconferencing systems such as Skype or FaceTime for user interactions; its launch is scheduled for later this year.
Oracle recently secured an agreement with chipmaker Ampere Computing that will enable their flagship database software to run on processors based on Arm architecture, making the database software compatible with low-power chips used by hyperscale cloud providers and enterprise IT vendors that prefer these chips in their data centres. Before this development, Intel Corp’s x86 designs dominated PCs and many data centres worldwide – while Ampere’s designs use iPhone processor technology, providing its designs more power efficiency compared with PC designs used to power hyperscale data centers and hyperscale cloud providers and enterprise IT vendors who prefer low power chips for data center environments.
Ampere’s chips are manufactured by Taiwan Semiconductor Manufacturing Co (TSMC), the same firm which supplies processors to AMD and Nvidia of Santa Clara. All three firms have switched over time from using Intel-designed chips but outsource production, to using TSMC.
Oracle’s decision to embrace Ampere processors in its cloud offerings represents another setback for Intel, which saw its market share slip last year amid competition from chips built with Arm architecture. Intel x86 chips remain dominant across PCs and most data centres but its share in cloud computing continues to decrease; its main rival, Advanced Micro Device Inc, has made strides using Arm-based chips.