Oracle is going all-in on the data center market, committing to a staggering $100 billion investment over the next four years. This ambitious plan is driven by the company’s focus on artificial intelligence (AI) and the need for massive computing power to train and run advanced AI models.
At the heart of Oracle’s strategy is a partnership with NVIDIA, the global leader in AI GPUs. NVIDIA will receive a significant share of the investment, estimated at 40%, reflecting its crucial role in enabling high-performance AI workloads.
Currently, Oracle operates 162 cloud data centers worldwide, with more under construction. The company’s CEO, Larry Ellison, has revealed plans to scale this network up to 2,000 data centers in the future.
This massive expansion is fueled by the exponential growth of AI, with Ellison describing the development of advanced AI models as a “technical supremacy battle” fought by a handful of companies and potentially a nation-state. He estimates that the cost of developing a truly advanced AI model will reach $100 billion over the next four to five years.
To power these data centers, Oracle is exploring groundbreaking energy solutions. Ellison has confirmed that the company is designing a data center capable of exceeding one gigawatt of power, fueled by three small modular nuclear reactors. The company has already secured building permits for these reactors, showcasing a commitment to pushing the boundaries of sustainable energy for data centers.
Ellison envisions a future where AI applications become increasingly specialized, with models tailored for specific tasks like medical diagnosis and image recognition. He emphasizes that the demand for AI computing will not slow down anytime soon, suggesting a continuous race for technological dominance.
Oracle’s massive investment and focus on AI highlight the rapidly evolving landscape of technology. The company’s bold commitment to data centers, coupled with its exploration of nuclear power, suggests a future where AI plays an increasingly central role in shaping the world. This investment also emphasizes the need for innovation in energy solutions to support the growing demands of AI and high-performance computing.
