OpenAI Taps Oracle’s Chips for Enhanced AI Power

Categories: AI NewsTags: , , , Published On: June 13, 20242 min read
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OpenAI, Microsoft, and Oracle Forge Alliance to Supercharge ChatGPT

OpenAI’s AI models, like ChatGPT, are becoming more sophisticated, demanding significantly more computational resources for training and running. OpenAI CEO, Sam Altman, has openly acknowledged this need, even exploring ventures like establishing an AI chip company to find solutions.

This newly announced partnership allows OpenAI to leverage the power of Microsoft’s Azure AI platform – a robust cloud-based environment specifically designed for AI development. However, the key twist is that this platform will be deployed on Oracle’s infrastructure. Oracle is known for its custom-designed AI chips, optimized for handling the intensive computations required for AI tasks.

“We are delighted to be working with Microsoft and Oracle. OCI will extend Azure’s platform and enable OpenAI to continue to scale,” said Sam Altman, Chief Executive Officer, OpenAI.

Previously, OpenAI relied solely on Microsoft Azure for its computing needs. This new collaboration suggests a potential shift towards a multi-cloud strategy. This could offer OpenAI greater flexibility in terms of resource allocation and potentially lead to more cost-effective solutions.

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Image Credit: The Verge

Both Microsoft and OpenAI are eager to dispel any concerns about a rift caused by this new partnership. OpenAI emphasizes that their “strategic cloud relationship with Microsoft is unchanged.” They clarify that the Oracle deal enables them to utilize specific functionalities of the Azure AI platform on Oracle’s infrastructure. For example, they can leverage Oracle’s resources for “inference,” which essentially refers to running AI models in real-world applications like ChatGPT.

It’s important to remember the substantial investment Microsoft has made in OpenAI. They hold a significant stake (49%) in OpenAI’s for-profit subsidiary and possess the exclusive right to commercially license OpenAI’s technology.

OpenAI assures us that their core partnership with Microsoft remains strong. They explicitly state that the pre-training of their most advanced models will continue to be done on supercomputers built specifically through their collaboration with Microsoft.

In essence, this partnership creates a three-way alliance. OpenAI gains access to additional resources from Oracle for specific tasks, while maintaining its strong relationship with Microsoft. This combined effort aims to ensure that ChatGPT and other OpenAI models have the necessary computing power to function effectively and keep pace with growing demand.

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