Nvidia has made a lot of money. Oracle will spend billions of dollars on GPU AI cloud service this year.

CTOnews.com, June 29 (Reuters)-Oracle Oracle founder and chairman Larry Ellison said on Wednesday that Oracle is spending "billions of dollars" on Nvidia chips to expand cloud computing services for the new wave of AI artificial intelligence.

Oracle's cloud division is trying to compete with larger competitors such as Amazon Web Services and Microsoft. To gain an advantage, Oracle set its sights on building a fast network that can handle large amounts of data needed by AI systems similar to ChatGPT.

Oracle has also purchased a large number of GPU to process data for artificial intelligence work. Oracle spent "billions" of dollars on Nvidia chips, Ellison said at the Ampere conference.

"this year, Oracle will buy GPU and CPU from three companies, and we will buy GPU from Nvidia, which is expected to cost billions of dollars," Ellison said. "We will also spend three times as much on the CPU of Ampere and AMD. In addition, Oracle will spend more money on traditional computing."

Oracle said last month that it had reached an agreement with artificial intelligence start-up Cohere, under which Cohere will provide artificial intelligence software that runs on Oracle's data center supercomputers, each equipped with up to 16000 Nvidia chips.