# Oracle Cloud adding tens of thousands of Nvidia chips for AI 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oracle and Nvidia Expand Partnership to Boost AI in the
Meta Description: Oracle and Nvidia announce partnership to add tens of thousands of Nvidia’s chips for AI work in Oracle’s cloud, with focus on A100 and H100 GPUs.
URL: https://financedigest.com/oracle-cloud-adding-tens-of-thousands-of-nvidia-chips-for-aihtml

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By Jane Lanhee Lee

OAKLAND, Calif. (Reuters) – Oracle Corp and Nvidia Corp on Tuesday announced they are expanding their partnership and adding tens of thousands of Nvidia’s chips to boost artificial intelligence- related computational work in Oracle’s cloud.

The [expanded partnership](https://www.financedigest.com/forescout-and-fireeye-expand-partnership-enabling-faster-response-to-cybersecurity-threats.html "FORESCOUT AND FIREEYE EXPAND PARTNERSHIP, ENABLING FASTER RESPONSE TO CYBERSECURITY THREATS") comes as more companies use AI and the AI models become more complex, requiring a ramp-up in data center infrastructure investments.

While the companies declined to [say how much the additional hardware would cost](https://www.financedigest.com/malaysias-new-pm-anwar-says-first-priority-is-cost-of-living.html "Malaysia’s new PM Anwar says first priority is cost of living") or how many chips were being sold, they said the expansion includes Nvidia’s A100 and its most advanced H100 GPUs or graphics processing units.

Those two [chips were also put on an export control list to China over a month](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") ago. Nvidia said at the time it had included $400 million of potential sales to [China which could be impacted in its third-quarter earnings outlook](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues").

As of August, [Nvidia’s market share of so-called accelerator chips](https://www.financedigest.com/nvidia-shows-new-research-on-using-ai-to-improve-chip-designs.html "Nvidia shows new research on using AI to improve chip designs") inside the world’s six biggest clouds’ infrastructure grew to 85%, according to a note by brokerage Jefferies on Monday. Chips that help [accelerate computing](https://www.financedigest.com/fintechs-should-accelerate-into-edge-computing-to-maintain-momentum.html "Fintechs should accelerate into edge computing to maintain momentum") speed include GPUs and are heavily used in AI work where Nvidia has the lion’s share.

While there are many AI chip startups challenging Nvidia, Clay Magouyrk, who is in charge of [Oracle Cloud](https://www.financedigest.com/oracle-offers-its-mysql-heatwave-database-and-analytics-on-amazons-cloud.html "Oracle offers its MySQL HeatWave database and analytics on Amazon’s 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](https://www.financedigest.com/the-leadless-pacing-system-market-to-fathom-the-depth-of-innovation.html "The Leadless Pacing System Market To Fathom The Depth Of Innovation") 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,” he said.

Manuvir Das, who is in charge of enterprise computing at Nvidia, said the Oracle partnership includes increased cooperation to make the AI software run more efficiently on Oracle Cloud and to [provide more support](https://www.financedigest.com/keysource-to-provide-critical-facilitiesmanagement-support-for-leeds-city-council.html "KEYSOURCE TO PROVIDE CRITICAL FACILITIESMANAGEMENT SUPPORT FOR LEEDS CITY COUNCIL") to Oracle’s customers.

(Reporting by Jane Lanhee Lee in Oakland, Calif.)


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