Oracle is making significant strides in the cloud computing arena, driven by strategic alliances with AI powerhouses like OpenAI and Nvidia. These deals are pivotal in Oracle's transformation, positioning it as a key player in the high-growth AI infrastructure market.
Specifically, Oracle is investing heavily in Nvidia's advanced GB200 chips, earmarking approximately $40 billion to acquire around 400,000 units. These chips will be deployed in a new data centre located in Texas, forming part of the ambitious Stargate project, a $500 billion AI infrastructure initiative. This facility is expected to deliver substantial computing power, rivalling other major projects in the AI space. By leasing this computing power to OpenAI, Oracle aims to support the training of next-generation AI models, capitalising on the increasing demand for robust AI infrastructure.
This move signifies Oracle's intent to challenge the dominance of existing cloud giants such as Amazon Web Services, Microsoft Azure, and Google Cloud. With cloud revenue on the rise, Oracle is strategically expanding its capabilities to strengthen its market presence and cater to the escalating data processing needs in the AI sector.
