Here’s Why Oracle Spent $100 Million On Ampere Chipsets

According to Oracle Corp.’s proxy statement submitted on Friday, the company agreed to prepay $104.1 million for processor chips created by the startup Ampere Computing.

According to the report, Oracle also made a $400 million convertible note investment in Ampere during its fiscal 2023.

Ampere competes with X86-based designs made by Intel and Advanced Micro Devices by producing its own Arm-based bespoke server processors. According to records, Oracle has contributed hundreds of millions of dollars to Ampere since the company’s founding.

The goal of Oracle’s investment in Ampere and its chip acquisitions is to outperform competitors with its cloud service. Google also produces its own AI processors, while produces its own server chips that compete with Ampere.

Ampere opted not to respond. Requests for comment from Oracle were not answered.