OpenAI and Microsoft collaborated with Oracle to further boost the computing capacity to run the Azure AI platform and ChatGPT.
Oracle recorded an increase in shares by more than 13%, a day after the company announced its partnership with Microsoft, OpenAI, and Google.
OpenAI Leans to Oracle for More Infrastructure Amid Tight AI Race
OpenAI has been relying fully on Microsoft for its computing needs, leading to its $13 billion investment in the AI company for a 49 percent stake. As the AI race tightens, OpenAI requires more infrastructure.
"The race to build the world's greatest large language model is on, and it is fueling unlimited demand for Oracle's Gen2 AI infrastructure," said Larry Ellison, Oracle chairman and CTO.
The chairman also claimed that the Oracle Cloud Infrastructure (OCI) offers the world's fastest and most cost-effective AI infrastructure. Other companies like NVIDIA, xAI, Reka, and more are utilizing OCI Supercluster to train and develop their next-generation AI models.
Oracle Shares Boost After Announcing New Partnerships
The software company shared $14.29 billion in revenue for the fourth quarter. Oracle has been signing deals with AI companies due to the increasing demand for AI infrastructure to train AI models.
On the other hand, OpenAI clarified that its primary and strategic relationship with Microsoft will remain the same, citing that the OCI deal will be used for inference and other needs. In addition, all the pre-training will still be done on Microsoft's supercomputers.
The partnership of OpenAI and Oracle marked the AI company's agenda to extend the Azura platform and to continuously grow its scale.
Analysts are still in the mix with Oracle's recent deals questioning the longer-term nature of the contracts. Regardless, its partnership with companies like OpenAI has increased its presence in the market.
