Oracle Adds ChatGPT and AI Chips to Its Cloud Platform

Oracle is expanding its artificial intelligence offerings by integrating OpenAI's ChatGPT and Codex into its applications while adding more specialized processors to Oracle Cloud Infrastructure. Announced Tuesday at Oracle AI World in Las Vegas, the moves aim to help businesses use AI through existing software systems and give customers more options amid continuing chip shortages.

The expanded collaboration brings OpenAI tools into Oracle's application stack, connecting generative AI capabilities with software and databases used by enterprises. Oracle's databases support data management and security across industries including healthcare and finance, making the integration relevant to organizations seeking to apply AI to existing business information.

Mahesh Thiagarajan, Oracle's president of Cloud Infrastructure, described how the integration could make application development more accessible.

"allows anybody to build an application, deploy it, manage it." Thiagarajan said.

Oracle also cited its experience supporting OpenAI's infrastructure needs. Thiagarajan said his team observed OpenAI's GPT-6 Astra model being trained at Oracle's Stargate data center campus in Abilene, Texas, and saw the benefits in real time.

Greg Brockman, president and co-founder of OpenAI, said the partnership reflects growing enterprise demand for the company's technology.

"More businesses are choosing OpenAI as we make it easier to put AI to work through the tools and systems they already use," Brockman said.

Oracle separately announced plans to make Google's tensor processing units, OpenAI's Jalapeño chip and Cerebras hardware available through its cloud infrastructure. The additions give customers access to processors designed for AI workloads beyond the hardware options traditionally available through major cloud providers.

Thiagarajan said the expanded selection could help customers address the limited supply of AI chips.

"Now customers can actually have infinite possibilities in terms of how they can drive AI," Thiagarajan said.

The introduction of Google's custom processors on Oracle's cloud marks the first time those chips will run on another hyperscaler's cloud infrastructure. Oracle said customers would gain additional accelerator options as demand for computing capacity continues to grow.

Thiagarajan rejected the suggestion that the expansion represented a move away from Nvidia graphics processing units. He described Nvidia chips as "the best, most fungible," while emphasizing the scale of the AI market.

Cerebras also confirmed its involvement in the Oracle cloud expansion, although a company spokesperson said it would not disclose the scale of the deal because the chipmaker was in a quiet period. Cerebras shares rose about 8% following the announcement, while Oracle shares gained nearly 5% on Tuesday.

The development follows Amazon Web Services' announcement seven months earlier that it planned to bring Cerebras hardware into its data centers.

Oracle also addressed Project Jupiter, its multibillion-dollar data center project in New Mexico, which has faced opposition from local residents. Thiagarajan said the project was one of 30-40 data center projects the company was developing per quarter.

"We're actually not too worried about what we're doing because I think we're building global infrastructure," Thiagarajan said.

A hearing on air quality permitting for Project Jupiter is scheduled for Dec. 7 in Sunland Park, where construction has already begun. Following political opposition to the project, Oracle sent a force majeure notice to financial backer Blue Owl Capital last month. Oracle maintains that the project remains on schedule.

Investors are also preparing for Oracle's investor day, where the company is expected to face questions about its fiscal 2030 revenue targets and the profitability of its cloud contracts as financing costs rise. Bank of America analysts identified updates on major data center projects as an issue likely to draw attention.

Oracle shares have fallen more than 30% this year, partly reflecting investor concerns about how the company will finance its expanding digital infrastructure investments.