In a recent conversation with analysts, Oracle co-founder Larry Ellison revealed that he and Tesla CEO Elon Musk dined with Nvidia CEO Jensen Huang at Nobu Palo Alto, where they “begged” for more of Nvidia’s sought-after graphics processing units (GPUs).
These GPUs are critical for advancing artificial intelligence (AI) and machine learning technologies.
“I would describe the dinner as me and Elon begging Jensen for GPUs,” Ellison jocked.
He recounted their plea for the highly demanded chips, adding that the outcome was positive.
“It went OK. I mean, it worked,” he said.
Ellison, a prominent figure in the tech industry, emphasized the increasing demand for Nvidia’s GPUs, which power some of the most advanced AI systems. Nvidia dominates more than 80% of the AI chip market, making its products essential for companies like Oracle and Tesla that are heavily investing in AI and cloud technologies.
Oracle, which reported a 7% revenue increase to $13.3 billion in its first-quarter results for fiscal 2025, has been significantly expanding its cloud infrastructure, including building data centers equipped with Nvidia GPU clusters. Similarly, Tesla relies on Nvidia chips to power its supercomputers, which are used for developing self-driving and AI-driven technologies.
Ellison also addressed the growing competition in AI development, likening it to a Formula One race where multiple companies are striving to build the most capable AI models. He estimated that creating a leading AI model over the next three years could cost up to $100 billion, underscoring the scale of investment required to stay competitive in the AI landscape.
As the demand for AI chips continues to surge, Nvidia’s supply remains tight. Huang has acknowledged that the demand for Nvidia’s latest generation chips is far outpacing supply, leaving customers anxious to secure these critical components.
Fortune, Quartz, and Business Insider contributed to this report.
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