Oracle and Microsoft recently discussed an unusual agreement to rent servers from each other if either company runs out of computing power for cloud customers that use large-scale artificial intelligence, according to a person with direct knowledge of the negotiations. A deal would help the two rival cloud providers meet surging demand for servers that can run AI software, which has caused a shortage.
The proposed deal discussions have been happening as Oracle Chairman Larry Ellison and other senior executives firm up a broader AI strategy, including how to use AI software—possibly from ChatGPT creator OpenAI—to improve the company’s core software products, the person said. Oracle is also considering developing AI software in-house that it would sell to cloud customers.
