Core Insights - Oracle Corporation's stock closed at $198.38 on December 22, reflecting a gain of over 3% amid significant trading volume, indicating a shift in market focus from AI chip manufacturing to infrastructure needs [3] - The AI market is transitioning from hardware procurement to deployment, with Oracle positioning itself as a critical utility provider for AI chip operations rather than a direct competitor in chip manufacturing [4][5] Company Performance - Oracle's transition from a legacy software company to a cloud infrastructure leader is evident, with second-quarter fiscal year 2026 growth metrics surpassing many hyperscale competitors [5] - Oracle Cloud Infrastructure (OCI) revenue increased by 68% year-over-year, while revenue from graphics processing units (GPUs) surged by 177%, highlighting strong demand for AI-related services [7] Strategic Moves - The company has a significant backlog of signed contracts, providing strong revenue visibility and supporting aggressive data center capacity expansion to meet rising demand [6] - Oracle's strategic pivot to Chip Neutrality, including the sale of its stake in Ampere for a $2.7 billion pre-tax gain, indicates a focus on partnerships with Nvidia and AMD, reducing manufacturing risks while capitalizing on the AI boom [8]

Google is working on a new software approach that would take aim at one of NVIDIA's biggest advantages in AI. Let's bring in Dear Jabosa with more details in today's tech check as we try to keep all of these pieces and players straight in our heads. Dearra, there's a lot going on.So, here's the story. It's that Google's chip challenge to Nvidia. It's moving from hardware to software.Nvidia's dominance with GPUs that's always gone handinand with software needed to run them. That is CUDA. But now, Reuters fir ...

Core Viewpoint - NVIDIA Corp. shares experienced a decline following Oracle Corp.'s announcement of a "chip neutrality" policy, indicating a shift in Oracle's approach to sourcing chips from various manufacturers, which may increase competition for NVIDIA [1][4]. Group 1: Oracle's Chip Neutrality Policy - Oracle's chairman and CTO, Larry Ellison, stated that the company will purchase premium chips from any producer to meet client demands, emphasizing a commitment to "chip neutrality" [2][3]. - Ellison confirmed that while Oracle will continue to buy the latest GPUs from NVIDIA, the company aims to remain flexible in deploying chips that customers prefer [3]. Group 2: Implications for NVIDIA - The announcement of chip neutrality by Oracle, a significant partner for NVIDIA, raises concerns about potential increased competition from other chip manufacturers such as AMD and Intel [4]. - Following Ellison's remarks, NVIDIA's stock price fell by 0.96%, closing at $182.02 in extended trading [4].