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Oracle and NVIDIA partner to boost U.S. government AI

EditorEmilio Ghigini
Published 25/04/2024, 13:54
© Reuters
ORCL
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AUSTIN, Texas - Oracle Corporation (NYSE: NYSE:ORCL) has announced the availability of NVIDIA (NASDAQ:NVDA) AI Enterprise on Oracle Cloud Infrastructure Supercluster in the U.S. Government Cloud region. This collaboration aims to accelerate sovereign artificial intelligence (AI) for U.S. government agencies by providing them with a secure and scalable platform to train and deploy AI solutions.

The integration of NVIDIA's AI technology with Oracle's cloud infrastructure offers government customers access to over 100 cloud services, including generative AI services powered by NVIDIA's H100 and A100 Tensor Core GPUs. These services are designed to meet stringent security, digital sovereignty, and compliance requirements essential for government operations.

NVIDIA AI Enterprise is a comprehensive software platform that facilitates the development and deployment of AI applications. It includes NVIDIA NIM, cloud-native inference microservices, and NVIDIA NeMo, which provides training and inferencing frameworks, as well as data curation tools. These resources support various government tasks, such as semantic search and document understanding.

Rand Waldron, Oracle's vice president for the Global Government Sector, emphasized that the offering leads sovereign AI adoption while maintaining security. Ian Buck, NVIDIA's vice president for Hyperscale and HPC Computing, highlighted the transformative potential of sovereign AI for governments, noting that the platform enables the development of secure AI applications to enhance operations and citizen services.

The Oracle Cloud Infrastructure Supercluster provides the necessary computing power and ultra-low-latency networking for demanding AI model training. Additionally, the Oracle Government Cloud offers a zero-trust security model and a range of security capabilities, including data encryption and identity management.

Government customers can access NVIDIA AI Enterprise on Oracle Cloud Infrastructure Supercluster through private offers in the Oracle Cloud Marketplace.

This development is part of Oracle's distributed cloud strategy, which aims to deliver the benefits of cloud computing with increased operational control and security to support digital sovereignty. The information is based on a press release statement from Oracle.

InvestingPro Insights

As Oracle Corporation (NYSE: ORCL) continues to expand its cloud offerings with the integration of NVIDIA AI Enterprise into its Oracle Cloud Infrastructure, it's important to note the company's financial and market standing. Oracle's market capitalization stands at a robust $316.79 billion, reflecting its significant presence in the industry. This is further underscored by a notable revenue growth of 9.49% over the last twelve months as of Q3 2024, suggesting a healthy expansion in its business operations.

Investors and analysts are keeping a close eye on Oracle's performance metrics. The company's P/E ratio is currently at 29.57, with an adjusted P/E ratio of 27.78 for the last twelve months as of Q3 2024. While this indicates a high valuation relative to near-term earnings growth, it's an aspect that market participants often scrutinize when assessing the company's stock. Additionally, Oracle has a Price / Book ratio of 56.4, which is considered high and may suggest that the company's assets are being valued at a premium by the market.

Oracle's commitment to returning value to shareholders is evident through its consistent dividend payments. The company has maintained dividend payments for 16 consecutive years and has raised its dividend for 10 consecutive years, with a recent dividend growth of 25.0%. This track record may be appealing to investors looking for stable income streams.

For those seeking more comprehensive analysis and insights, InvestingPro offers additional InvestingPro Tips for Oracle, including the latest analyst revisions and how the company's financials compare to industry peers. To make the most informed investment decisions, consider exploring these tips with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using coupon code PRONEWS24. There are 11 more InvestingPro Tips available that could provide deeper understanding of Oracle's market position and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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