On Tuesday, Oracle Corp. (ORCL.N) and Nvidia Corp. (NVDA.O) announced they were expanding their collaboration and bringing on tens of thousands of Nvidia chips to increase computing tasks linked to artificial intelligence on Oracle’s cloud. The cooperation has grown as more businesses utilize AI and AI models get more complicated, necessitating increased expenditures in data center infrastructure.
The businesses claimed that the expansion included Nvidia’s A100 and its most cutting-edge H100 GPUs, however, they failed to reveal how much the new gear would cost or how many chips were being sold. Also added to an export control list for China more than a month earlier were those two semiconductors. Nvidia stated at the time that it had projected its third-quarter results to include $400 million in possible sales to China, which might be harmed.
According to a report published by stockbroker Jefferies on Monday, Nvidia’s market share of so-called accelerator chips inside the infrastructure of the six most considerable clouds in the world increased to 85% as of August. GPUs are a type of chip that speeds up computation, and Nvidia controls the lion’s share of this market.
While there are many AI chip startups challenging Nvidia, Clay Magouyrk, who is in charge of Oracle Cloud Infrastructure, said he does not see much of an opening for the newcomers.
“If you look at the pace at which Nvidia is innovating every 12 to 18 months, they come out with a 10 to 50 times better platform. I believe that for someone to be able to attack that dominance, Nvidia is going to have to stumble,” he said. Nvidia’s Manuvir Das, who oversees corporate computing, claimed that the Oracle alliance entails enhanced collaboration to improve the performance of the AI software on Oracle Cloud and to offer additional assistance to Oracle’s clients.
