The News: Oracle and NVIDIA announced an expanded collaboration to deliver sovereign AI solutions to customers globally. Read the full press release on the Oracle website.
Oracle and NVIDIA Boost Sovereign AI Globally
Analyst Take: Oracle’s distributed cloud, AI infrastructure, and generative AI services, combined with NVIDIA’s accelerated computing and generative AI software, are targeted at enabling governments and enterprises to deploy AI factories. Such AI factories can run cloud services locally, and within a nation’s or organization’s secure premises with a range of operational controls, supporting sovereign goals of increasing and diversifying economic growth.
I see the combination of NVIDIA’s full-stack AI platform with Oracle’s Enterprise AI, as deployable across OCI Dedicated Region, Oracle Alloy, Oracle EU Sovereign Cloud, and Oracle Government Cloud, offering customers a robust AI solution that can deliver broader control over operations, location, and security to help support digital sovereignty.
Nations worldwide are increasingly investing in AI infrastructure that can support their cultural and economic ambitions. Across 66 cloud regions in 26 countries, customers can now access more than 100 cloud and AI services spanning infrastructure and applications to support IT migration, modernization, and innovation.
Oracle and NVIDIA: Vital to Delivering Sovereign AI Worldwide
In my view, Oracle provides extensive experience in data management, analytics, and business applications that strengthen the global reach of its cloud infrastructure. In accordance with that, NVIDIA’s AI acceleration capabilities, exemplified by its high-performance graphics processing units (GPUs), are at the forefront of AI acceleration innovation. NVIDIA’s hardware and software solutions already power computer vision, deep learning, and scientific computing.
By using NVIDIA’s technology, organizations can attain swifter AI model training and experience, including, especially, sovereign AI environments. I expect that countries and organizations will increasingly prioritize sovereign AI to ensure better control over AI systems. This also entails ensuring data privacy, compliance, and security with local regulations. Fundamentally, Oracle and NVIDIA’s collaboration aims to provide AI solutions that adhere to data sovereignty principles and respect national boundaries.
Through their expanded alliance, I expect that Oracle and NVIDIA can play an integral role in delivering and fulfilling sovereign AI across key verticals such as smart cities, by improving urban planning, energy efficiency, and transportation and finance (by enhancing risk assessment, augmenting fraud detection, and trading algorithms) and health care, by enhancing medical imaging, personalized treatment, and medical imagery, and national security through AI-driven capabilities.
Oracle Brings Proven Strategic Commitment to Data Privacy and Sovereignty
For instance, Oracle EU [European Union] Sovereign Cloud already helps organizations in regulated industries and governments to adopt fast-evolving AI techniques such as generative AI. Organizations have faced barriers that prevented the use of existing generative AI offerings. Such barriers include data residency and regulatory requirements that preclude organizations from using AI infrastructure in the public cloud to develop the models required for generative AI. By offering the services and capabilities of Oracle’s public cloud, Oracle EU Sovereign Cloud can enable public sector organizations to use AI infrastructure in a cloud that aligns with EU data residency and sovereignty requirements.
Moreover, Oracle EU Sovereign Cloud is positioned to help accelerate the adoption of key cloud applications across the European Union. For example, the OCI content delivery network (CDN) platform can provide a formidable competitive alternative to established CDNs such as Akamai and Cloudflare.
To help customers further secure their data and address data sovereignty requirements, Oracle Cloud Infrastructure (OCI) is introducing two new key management services available across all Oracle Cloud Regions, including EU Sovereign Cloud: OCI Dedicated Key Management Service and OCI External Key Management Service.
OCI External Key Management is built in partnership with the Thales Group and lets customers encrypt their data using encryption keys that are created and managed by the customer outside of OCI. These encryption keys always stay within custody of the customer and are never imported into OCI, enabling customers to move to OCI regulated workloads that require control over the physical storage of keys outside the cloud. OCI Dedicated Key Management gives customers control over their encryption keys by using a dedicated, single-tenant hardware security module (HSM) provisioned within OCI.
In my view, Oracle is outflanking its hyperscaler rivals―AWS, Azure, and Google Cloud―with EU Sovereign Cloud. Such rivals address the EU market by offering logical separation of traffic, which typically includes charging extra for a discrete policy or encryption key to attain data sovereignty. In stark contrast, Oracle EU Sovereign Cloud provides an extra layer of physical separation backed by the assurance that only EU-based personnel handle the workloads, with operations administered by separate EU legal entities at no extra cost.
The OCI-NVIDIA combined offerings can be deployed through the public cloud or in a customer data center in specific locations, with flexible operational controls. I find that Oracle is the only hyperscaler capable of delivering AI and full cloud services locally, anywhere. OCI services and pricing are consistent across deployment types to streamline planning, management, and portability.
This is demonstrated by TEAM IM, a New Zealand information management services provider, choosing Oracle Alloy to build New Zealand’s first locally owned and operated hyperscale cloud, known as TEAM Cloud. Plus, e& UAE, the telecom arm of e& group, is collaborating with Oracle to enhance its AI capabilities and it intends to deploy NVIDIA H100 Tensor Core GPU clusters within its OCI Dedicated Region.
Oracle’s cloud services leverage a range of NVIDIA’s stack, including NVIDIA accelerated computing infrastructure and the NVIDIA AI Enterprise software platform, including newly announced NVIDIA NIM inference microservices built on the foundation of NVIDIA inference software such as NVIDIA TensorRT, NVIDIA TensorRT-LLM, and NVIDIA Triton Inference Server.
To help customers address the ever-increasing needs of AI models, Oracle plans to take advantage of the latest NVIDIA Grace Blackwell computing platform, announced at the company’s March GTC, across OCI Supercluster and OCI Compute. OCI Supercluster can become faster with new OCI Compute bare metal instances, RDMA networking, and storage. OCI Compute will adopt both the NVIDIA GB200 Grace Blackwell Superchip and the NVIDIA Blackwell B200 Tensor Core GPU.
NVIDIA Grace Blackwell Ushers in Breakthrough Computing for AI Era
The NVIDIA GB200 Grace Blackwell Superchip can power a new era of computing as GB200 delivers up to 30X faster real-time large language model (LLM) inference, 25X lower total cost of ownership (TCO), and requires 25X less energy compared to the previous generation of GPUs, boosting AI training, data processing, and engineering design and simulation. NVIDIA Blackwell B200 Tensor Core GPUs are designed for the most demanding AI, data analytics, and high-performance computing (HPC) workloads.
NVIDIA NIM and CUDA-X microservices, including NVIDIA NeMo Retriever for retrieval augmented generation (RAG) inference deployments, will also help OCI customers bring more insight and accuracy to their generative AI copilots and other productivity tools using their own data. To meet escalating customer demand for increasingly complex AI models, the companies are adding NVIDIA Grace Blackwell to NVIDIA DGX Cloud on OCI.
Customers will be able to access new GB200 NVL72-based instances through this co-engineered supercomputing service designed for energy-efficient training and inference in an era of trillion-parameter LLMs. The full DGX Cloud cluster buildout will include more than 20,000 GB200 accelerators and NVIDIA CX8 InfiniBand networking, providing a scalable and high-performing cloud infrastructure. The cluster will consist of 72 Blackwell GPUs NVL72 and 36 Grace CPUs with fifth-generation NVLink.
Key Takeaways: Oracle and NVIDIA Makes AI Sovereignty Global and Secure
Overall, I believe that the expanded collaboration brings together Oracle’s cloud sovereignty and enterprise application acumen with NVIDIA’s AI prowess to create a more secure, efficient, and globally accessible AI ecosystem. The collaboration affirms Oracle’s unique ability to deploy cloud regions swiftly and locally to ensure that societies can optimize AI without undermining their security.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Ron is an experienced, customer-focused research expert and analyst, with over 20 years of experience in the digital and IT transformation markets, working with businesses to drive consistent revenue and sales growth.
He is a recognized authority at tracking the evolution of and identifying the key disruptive trends within the service enablement ecosystem, including a wide range of topics across software and services, infrastructure, 5G communications, Internet of Things (IoT), Artificial Intelligence (AI), analytics, security, cloud computing, revenue management, and regulatory issues.
Prior to his work with The Futurum Group, Ron worked with GlobalData Technology creating syndicated and custom research across a wide variety of technical fields. His work with Current Analysis focused on the broadband and service provider infrastructure markets.
Ron holds a Master of Arts in Public Policy from University of Nevada — Las Vegas and a Bachelor of Arts in political science/government from William and Mary.
