HomeMost PopularInvestingOracle (ORCL) and NVIDIA (NVDA) Forge Revolutionary Alliance for Sovereign AI Solutions

Oracle (ORCL) and NVIDIA (NVDA) Forge Revolutionary Alliance for Sovereign AI Solutions

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Oracle and NVIDIA have embarked on a groundbreaking collaboration, aiming to revolutionize how artificial intelligence (AI) solutions are provided globally. In a move towards Sovereign AI, the two tech giants are joining forces to offer cutting-edge technology aligned with digital sovereignty frameworks.

This strategic partnership marries Oracleโ€™s sprawling cloud network, AI infrastructure, and generative AI services with NVIDIAโ€™s robust accelerated computing and generative AI software.

Together, these entities empower governments and businesses to construct AI factories, bridging the gap for secure, localized cloud services and driving the objectives of sovereignty for enhancing economic growth and diversification.

Oracle Corporation Price and Consensus

Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Key Components of the Collaboration

This partnership offers turnkey solutions designed to assist customers in meeting data sovereignty requirements. By synergizing NVIDIAโ€™s comprehensive AI platform with Oracleโ€™s Enterprise AI, deployable across various Oracle Cloud Infrastructure (โ€œOCIโ€) environments, customers gain enhanced control over operations, location, and security.

Oracleโ€™s cloud services, utilizing NVIDIAโ€™s stack, encompass accelerated computing infrastructure and generative AI software, ensuring a blend of flexibility and security. Oracle takes the lead as the solitary hyperscaler adept at providing AI and full cloud services both locally and globally.

Empowering Sovereign AI Pioneers

Numerous organizations have readily adopted these sovereign AI solutions. For instance, Avaloq, a frontrunner in wealth management technology, selected OCI Dedicated Region to maintain data residency control while accessing state-of-the-art cloud infrastructure.

Similarly, TEAM IM, a notable information management services provider in New Zealand, harnessed Oracle Alloy to establish the nationโ€™s premier locally owned hyperscale cloud, enabling secure navigation of the digital landscape for organizations.

In addition, e& UAE, the telecom wing of e& group, collaborated with Oracle to amplify its AI capabilities, with plans to deploy NVIDIA H100 Tensor Core GPU clusters within its OCI Dedicated Region, thereby accelerating AI innovation across the UAE.

Advancements in AI Infrastructure to Propel Growth

Oracle is gearing up to integrate NVIDIAโ€™s Grace Blackwell computing platform across OCI Supercluster and OCI Compute, elevating the performance of AI models significantly. The NVIDIA GB200 Grace Blackwell Superchip promises rapid real-time large language model inference and reduced total cost of ownership, revolutionizing AI training, data processing, as well as engineering design and simulation.

Furthermore, NVDAโ€™s Grace Blackwell will debut on DGX Cloud on OCI, offering energy-efficient training and inference for complex AI models. With over 20,000 GB200 accelerators and NVIDIA CX8 InfiniBand networking on board, this concordantly engineered supercomputing service ensures scalable and high-performing cloud infrastructure. These innovative features are projected to bolster cloud services and license revenues.
The Zacks Consensus Estimate for ORCLโ€™s fiscal 2024 cloud services and license revenues stands at $44.68 billion, indicating a robust year-over-year growth of 26.5%. The Zacks Consensus Estimate for 2024 earnings is forecasted at $5.54 per share, reflecting an 8.2% year-over-year surge.

Shares of this Zacks Rank #3 (Hold) company have surged by 21.1% year to date, outpacing the Zacks Computer and Technology sectorโ€™s growth of 8.7%. For a comprehensive list of todayโ€™s top Zacks #1 Rank (Strong Buy) stocks, click here.

Tough competition lurks in the shadows as companies like Amazon and Microsoft eye the AI domain. Amazon Web Services (โ€œAWSโ€) offers bespoke cloud services tailored for government entities with varying security classifications. With over 7,500 government clients relying on AWS, the platform emphasizes the delicate balance between efficiency and rigid security benchmarks.

Microsoft, on the other hand, has crafted specialized blueprints for government bodies, catering to their unique requirements. These plans encompass all elements of Microsoft 365 services, hosted within a dedicated government cloud environment in adherence to U.S. security and regulatory norms.

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