Last Updated: September 24, 2023, 15:36 IST
Oracle Corp agreed to prepay $104.1 million for processor chips made by startup Ampere Computing, according to Oracle’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 and Advanced Micro Devices, which use X86. Oracle has invested hundreds of millions of dollars in Ampere since it was founded, according to filings.
The idea behind the investment in Ampere – and its chip purchases – is to give Oracle’s cloud an advantage over rivals. Amazon.com makes its own server chips that compete with Ampere, and Google makes its own artificial intelligence processors.
Ampere declined to comment. Oracle did not return a request for comment.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)