Oracle has stated that it will spend "billions" on Nvidia chips this year in order to expand its cloud computing service

Oracle is investing "billions" of dollars on Nvidia processors as it grows a cloud computing service aimed at a new wave of artificial intelligence (AI) startups, according to Oracle founder and Chairman Larry Ellison.

Oracle's cloud subsidiary is attempting to obtain a competitive advantage over larger rivals such as Amazon Web Services and Microsoft. Oracle has concentrated on constructing fast networks that can shuffle around the massive amounts of data required to produce AI systems similar as ChatGPT in order to gain an advantage.

Oracle is also purchasing a large number of graphics processing units (GPUs) to crunch data for AI operations.

Oracle is also spending "billions" of dollars on Nvidia processors, but even more on CPUs from Ampere Computing, a semiconductor startup in which it has invested, and Advanced Micro Device, according to Ellison, who spoke at an Ampere event.

"This year, Oracle will buy GPUs and CPUs from three different companies," Ellison remarked. "We will purchase GPUs from Nvidia in the billions of dollars." We'll spend three times as much on Ampere and AMD CPUs. We continue to spend more money on traditional computing."

Oracle said last month that it had reached an agreement with Cohere, an AI company formed by ex-Google workers, under which Cohere will sell its AI software operating on supercomputers within Oracle's data centres, each of which has up to 16,000 Nvidia chips.

Other businesses, such as CoreWeave, which secured a new $200 million (approximately Rs. 16.3 crore) in investment earlier this year, are also targeting AI startups with cloud gear that mainly relies on Nvidia GPUs.