At the Oracle AI World conference in Las Vegas on Tuesday, Oracle announced an expanded partnership with OpenAI that brings ChatGPT and Codex into Oracle applications and makes those capabilities available on Oracle Cloud Infrastructure (OCI).
Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, said integrating ChatGPT will allow users to build, deploy and manage applications more directly on Oracle databases and services. The announcement is a further step for OpenAI into the enterprise market; it came one day after Anthropic filed documents related to a potential public offering.
Thiagarajan also revealed that his team personally monitored training of OpenAI’s GPT-6 Astra model at Oracle’s Stargate data center in Abilene, Texas.
Multiple hardware options on OCI
Oracle said it will offer several types of hardware on its cloud going forward, including Google’s custom TPU chips, OpenAI’s in-house Jalapeño processor, and solutions from Cerebras. Google’s custom chips will run on a competing cloud provider’s infrastructure for the first time.
Thiagarajan emphasized this does not signal a move away from Nvidia GPUs, which he described as still the best and most versatile chips. However, he noted ongoing shortages in accelerators make it important for customers to have a choice among different types of accelerators.
A Cerebras spokesperson characterized the agreement with Oracle as large in volume, but declined to disclose exact terms citing a pre-IPO blackout.
Market reaction and wider context
Following the announcement, Cerebras shares rose roughly 8 percent and Oracle’s stock gained nearly 5 percent. Still, Oracle shares have fallen more than 30 percent year-to-date amid uncertainty over how the company will finance its ambitious infrastructure expansion.
Thiagarajan also addressed controversy around Oracle’s Project Jupiter, a multi-billion-dollar data center in New Mexico that faces significant local opposition. A regulatory hearing on environmental permits is scheduled for December 7 in Sunland Park, where construction has already begun. Oracle said it sent a force majeure notice last month to Blue Owl Capital, the project’s financier, because of local resistance.
Attention is now turning to Oracle’s upcoming investor day, where the company is expected to provide more detail on the plausibility of its revenue targets for fiscal 2030 and on margins in its cloud business.
This article is based on Oracle’s and OpenAI’s announcements made at the Oracle AI World conference and on statements by Oracle representatives.
