NVIDIA and Oracle expand their partnership

The companies have announced an expansion of their partnership and the addition of many thousands of Nvidia chips to accelerate AI-related computational work in the Oracle cloud.

The expansion of the partnership comes as the number of companies that use AI increases. Thus, the development and increasing complexity of such technologies requires increased investment in data center infrastructure.

Although the companies declined to name the cost of the additional hardware or the estimated number of chips sold, it was stated that the expansion includes Nvidia's A100 chips and its state-of-the-art H100 GPUs.

Nvidia's market share of so-called accelerator chips in the six largest cloud infrastructures rose to 85% in August, according to Jefferies. The chips that help accelerate computing include GPUs and are heavily used in artificial intelligence, where Nvidia also has the lion's share of the market.

Although many AI chip startups are trying to compete with Nvidia, Clay Magouyrk, who is in charge of Oracle Cloud Infrastructure, said he doesn't see much competition for newcomers. Magouyrk said Nvidia produces excellent quality products, given their updates every 12 to 18 months. He believes that only an exceptional competitor can squeeze Nvidia's dominance in the market.

Manuvir Das, who is in charge of enterprise computing at Nvidia, said the partnership with Oracle involves an expanded collaboration to improve the efficiency of AI software in the Oracle Cloud and provide more support to their customers.