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Oracle spends more than $100 million on Ampere chips

Published 09/22/2023, 05:33 PM
Updated 09/22/2023, 06:25 PM
© Reuters. FILE PHOTO: A screen displays the logo and trading information for Oracle Corporation on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2023.  REUTERS/Brendan McDermid/File Photo
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(Reuters) -Oracle Corp agreed to prepay $104.1 million for processor chips made by startup Ampere Computing, according to Oracle (NYSE:ORCL)'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 (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD), which use X86. Oracle has invested hundreds of millions of dollars in Ampere since it was founded, according to filings.

© Reuters. FILE PHOTO: A screen displays the logo and trading information for Oracle Corporation on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2023.  REUTERS/Brendan McDermid/File Photo

The idea behind the investment in Ampere – and its chip purchases - is to give Oracle's cloud an advantage over rivals. Amazon.com (NASDAQ:AMZN) makes its own server chips that compete with Ampere, and Google (NASDAQ:GOOGL) makes its own artificial intelligence processors.

Ampere declined to comment. Oracle did not return a request for comment.

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