According to a person with direct knowledge of the negotiations, Oracle and Microsoft recently discussed an unusual agreement, if either company provides a cloud solution for the use of large-scale AI. If the computing power provided by the customer is insufficient, both parties will rent servers from each other.
The deal will help the two rival cloud service providers meet the growing demand for servers that can run AI software, which has led to a shortage of servers.
Discussions about the proposed deal have been ongoing as executives including Oracle Chairman Larry Ellison hammer out a broader AI strategy, including how to use AI software, possibly from the development of ChatGPT, the person said. Vendor Openai) to improve the company’s core software products. Oracle is also considering developing AI software in-house and selling it to cloud customers.
