NVIDIA Corp. (NASDAQ:NVDA) shares dipped in Wednesday's extended trading after Oracle Corp. (NYSE:ORCL) chairman and CTO Larry Ellison said his company will purchase chips from any producer in prepared remarks released with the company's earnings report.
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The Details: Ellison made it clear that Oracle will purchase premium chips from any maker in order to provide clients with the products they are looking to deploy. He dubbed the policy "chip neutrality."
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“We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers," Ellison said in the statement.
"Of course, we will continue to buy the latest GPUs from Nvidia, but we need to be prepared and able to deploy whatever chips our customers want to buy," he continued.
Ellison noted Oracle sold Ampere because the company no longer believes it's strategic to design and manufacture its own chips.
"There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes,” he added.
Nvidia shares moved lower in response to Ellison's remarks on chip neutrality. Nvidia counts Oracle as a major partner and Ellison's bold statement on chip suppliers shows the possibility of increased competition from rivals like AMD, Intel and other chip manufacturers.
NVDA Stock Price: According to data from Benzinga Pro, Nvidia stock fell 0.96% to $182.02 in Wednesday's extended trading.
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