Oracle Corporation (ORCL)

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Oracle (ORCL) Integrates Nvidia’s AI Stack Into Its Cloud Marketplace
By: Investing | October 20, 2023

Oracle (NYSE:ORCL), the multinational computer technology corporation led by Larry Ellison, has formed a strategic partnership with Nvidia (NASDAQ:NVDA), a prominent player in the Semiconductors & Semiconductor Equipment industry with a market cap of 1020.0B USD, to incorporate the latter's high-end GPUs and comprehensive AI stack into Oracle Cloud Infrastructure (OCI). This move was announced on Friday and marks a significant advancement in Oracle's AI offerings.

The partnership enables customers to directly access Nvidia’s DGX Cloud AI supercomputing platform and AI Enterprise software for training AI models and developing generative AI applications on OCI. Customers can utilize their existing universal cloud credits for these services.

Karan Batta, senior vice president for Oracle Cloud Infrastructure, emphasized that the alliance with Nvidia, whose net income is expected to grow this year according to InvestingPro Tips, would provide organizations with an accelerated compute infrastructure. This infrastructure will expedite the deployment of Nvidia software and GPUs, thereby speeding up the roll-out of AI services.

The OCI marketplace now includes Nvidia DGX Cloud and AI Enterprise software, expanding its array of add-on solutions and services. Nvidia DGX Cloud is an AI-training-as-a-service platform that leverages Nvidia’s DGX technology to facilitate multi-node training of custom generative AI models. Nvidia AI Enterprise is an enterprise-grade toolkit that includes the Nvidia NeMo framework, TensorRT LLM open-source library, and Triton Inference server to optimize and standardize AI model deployment and execution.

Among the users of Nvidia’s AI stack on OCI are Gemelo.ai, led by CEO Paul Jaski, and the University at Albany in New York. Oracle has largely advanced its own AI capabilities through industry partnerships, such as its collaboration with Cohere to develop a service that simplifies the training of custom LLMs while ensuring data privacy and security. Oracle's internal application development teams are also utilizing this service in areas focused on HR and healthcare professionals.

Nvidia, with a P/E ratio of 99.27 and a revenue growth of 9.9 % according to InvestingPro, is a company that yields high returns on invested capital and has maintained dividend payments for 12 consecutive years. This information, coupled with the fact that Nvidia's stock price movements are quite volatile, makes it a company to watch closely in the AI and cloud computing sector.

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