LAS VEGAS - Oracle has announced the availability of what it calls the world's largest AI supercomputer in the cloud, powered by up to 131,072 NVIDIA (NASDAQ:NVDA) GPUs. This new offering from Oracle Cloud Infrastructure (OCI) is designed to provide customers with vast resources for building, training, and inferring AI at scale. The announcement was made at the Oracle CloudWorld event on September 11, 2024.
The supercomputer is part of Oracle's first zettascale cloud computing clusters, which are accelerated by the NVIDIA Blackwell platform. OCI's Supercluster aims to deliver an unprecedented 2.4 zettaFLOPS of peak performance, which is more than three times the GPU count of the Frontier supercomputer and over six times that of other hyperscalers.
OCI Superclusters are configurable with NVIDIA's H100 or H200 Tensor Core GPUs or the forthcoming NVIDIA Blackwell GPUs, which are expected to be available in the first half of 2025. The H100 GPU-based clusters can scale up to 16,384 GPUs, while the H200 GPU-based clusters will scale to 65,536 GPUs, with the latter expected to be available later this year.
Customers like WideLabs and Zoom (NASDAQ:ZM) are already utilizing OCI's AI infrastructure. WideLabs, a Brazilian AI startup, is training one of Brazil's largest language models, Amazonia IA, on OCI, while Zoom is using OCI to provide inference for its AI personal assistant, Zoom AI Companion.
Oracle's announcement emphasizes the flexibility of its distributed cloud, allowing customers to deploy services while maintaining data and AI sovereignty. This aligns with the requirements of various regions, such as Brazil and Saudi Arabia, where customers must keep sensitive data within country borders.
While Oracle and NVIDIA have made forward-looking statements about their products and services, they caution that these are subject to change and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described remain at the sole discretion of Oracle Corporation (NYSE:ORCL) and NVIDIA.
This news is based on a press release statement and aims to provide investors and customers with the latest developments in cloud computing and AI infrastructure.
In other recent news, Oracle has introduced significant enhancements to its Fusion Cloud Suite, including over fifty new artificial intelligence (AI) agents and a new open skills architecture. These improvements are designed to streamline business functions such as finance, human resources, and supply chain management. The company has also launched a new RFID for Replenishment feature within its Oracle Fusion Cloud Supply Chain & Manufacturing suite, aimed at optimizing inventory management for healthcare providers.
In terms of customer experience management, Oracle has unveiled new AI tools within its Oracle Unity Customer Data Platform and introduced new cloud Customer Experience tools for improved B2B buying and selling processes. These recent developments reflect Oracle's ongoing commitment to innovation and the integration of AI into its cloud services.
Financial analysis firm Argus has maintained a Buy rating on Oracle, highlighting strong demand for the company's services. Oracle's management anticipates double-digit revenue growth, primarily driven by cloud revenue. The company's recent collaborations with leading hyperscale cloud providers have enabled it to offer a variety of computing options, catering to diverse customer needs and helping Oracle maintain its significant market share in database software.
InvestingPro Insights
Oracle Corporation (NYSE: ORCL) has been making significant strides in the tech industry, as reflected by their recent announcement of the world's largest AI supercomputer in the cloud. With an aim to revolutionize AI capabilities, Oracle's market performance and financial metrics provide valuable insights for investors and industry observers.
InvestingPro data highlights Oracle's robust market capitalization, standing at a remarkable $429.61 billion. This figure underscores Oracle's strong position in the market, bolstering investor confidence in the company's stability and growth potential. Additionally, the company's revenue for the last twelve months as of Q1 2025 reached $53.81 billion, with a growth rate of 5.6%, indicating a steady upward trajectory in Oracle's financial performance.
Investors should note Oracle's high Price/Earnings (P/E) ratio of 40.17, which suggests a premium valuation compared to earnings. This is further emphasized by the adjusted P/E ratio of 37.35 for the same period. A high P/E ratio can often reflect investor optimism about future growth or a company's strong market position, which in Oracle's case, may be supported by their continuous innovation in cloud computing and AI technologies.
One of the InvestingPro Tips for Oracle is the company's consistent track record of raising its dividend for 11 consecutive years. This indicates a commitment to returning value to shareholders and a stable financial outlook. On the other hand, a noteworthy caution for investors is that 11 analysts have revised their earnings expectations downwards for the upcoming period, signaling potential headwinds or a conservative outlook on Oracle's near-term performance.
For those seeking a deeper dive into Oracle's financial health and market prospects, InvestingPro offers additional tips, including insights on Oracle's trading multiples, industry position, and analysts' profitability predictions. There are 20 more InvestingPro Tips available for Oracle, which can be explored at https://www.investing.com/pro/ORCL, providing a comprehensive analysis for informed investment decisions.
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