On Tuesday, Oracle declared its plans to deploy tens of thousands of Nvidia’s top-of-the-range A100 and H100 compute GPUs to its Oracle Cloud Infrastructure (OCI). Now, A100 as well as H100 will be made available for Oracle’s cloud customers for their AI workloads that have been enabled by Nvidia’s AI software. The exact terms related to the deal are not yet disclosed, but we are discussing a transaction that is worth hundreds of millions of dollars. 

The all-new collaboration between Nvidia and Oracle will make the following things available to all enterprise customers: AI training, computer vision, data processing, deep learning inference, and simulation. They won’t have to spend a huge amount to deploy their data centers with Nvidia’s expensive compute GPUs. Oracle offers access to OCI clients in high-performance computing instances and now provides them with several AI capabilities too. 

Nvidia’s AI platforms that enterprise clients of Oracle’s OCI will have an access to are as follows: 

• AI Enterprise 

• RAPIDS 

• Clara 

Both Nvidia’s A100 and H100 compute GPUs are expensive. Also, previous-gen A100 compute GPUs cost from $10,000 to $15,000 on the basis of the exact configuration, and the next-gen H100 products are even more costly. Thus, it can be said that as Oracle won’t buy Nvidia’s compute GPUs for retail prices, it pays a premium till now for Nvidia’s hardware and software. 

As we are talking about tens of thousands of computing GPUs with Nvidia’s NVLink switches and data processing units, we can expect the deal between Nvidia and Oracle to be worth hundreds of millions of dollars. But it is for sure that working with Oracle is vital for Nvidia as it won’t be able to sell compute CPUs to customers in China. 

We will conclude with the statement of Safra Catz, CEO of Oracle who said, their expanded alliance with Nvidia will give the best of both the companies’ expertise that in return would help the customers across industries starting from healthcare and manufacturing to telecommunications and financial services to overcome the multitude of challenges they face.