Last Updated: September 24, 2023, 15:36 IST
Oracle is trying to better compete with rivals.
Oracle has agreed to prepay $104.1 million for processor chips made by startup Ampere Computing, according to Oracle’s proxy statement filed on Friday.
Oracle Corp agreed to prepay $104.1 million for processor chips made by startup Ampere Computing, according to Oracle’s proxy statement filed on Friday.
Oracle also invested $400 million in Ampere through a convertible note in its fiscal 2023, the proxy said.
Ampere builds custom server chips based on Arm technology that compete with designs produced by Intel and Advanced Micro Devices, which use X86. Oracle has invested hundreds of millions of dollars in Ampere since it was founded, according to filings.
The idea behind the investment in Ampere – and its chip purchases – is to give Oracle’s cloud an advantage over rivals. Amazon.com makes its own server chips that compete with Ampere, and Google makes its own artificial intelligence processors.
Ampere declined to comment. Oracle did not return a request for comment.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
Oracle’s Investment in Ampere Chipsets
Oracle Corporation has made a significant investment in Ampere Computing, a startup that develops custom server chips based on Arm technology. Oracle prepaid $104.1 million for processor chips made by Ampere, as stated in the company’s proxy statement filed on Friday. Additionally, Oracle also invested $400 million in Ampere through a convertible note. These investments demonstrate Oracle’s commitment to compete with its rivals and strengthen its position in the technology market.
Ampere Computing’s server chips directly compete with designs from industry giants such as Intel and Advanced Micro Devices (AMD), which use X86 technology. By partnering with Ampere, Oracle aims to enhance its cloud infrastructure and gain an advantage over rivals like Amazon.com and Google. Amazon.com produces its own server chips that directly compete with Ampere, while Google focuses on manufacturing artificial intelligence processors. Through this investment, Oracle aims to leverage Ampere’s technology to differentiate itself in the market and provide unique offerings to its customers.
Oracle’s investment in Ampere is not new. The company has been supporting Ampere since its inception and has invested hundreds of millions of dollars in the startup. This shows Oracle’s confidence in Ampere’s technology and its belief in the future potential of Arm-based server chips.
Both Oracle and Ampere have not commented specifically on this investment. However, the significance of this partnership cannot be understated. It allows Oracle to diversify its technology ecosystem and solidify its position within the industry.
In conclusion, Oracle’s $100 million investment in Ampere chipsets showcases its dedication to innovation and competitiveness. By aligning itself with Ampere’s Arm-based server chips, Oracle aims to transform its cloud infrastructure and stay ahead of its counterparts. This investment marks a strategic move for Oracle as it strives to provide cutting-edge solutions to its customers and lead the technology market.
(Note: This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
