Oracle announced an expanded collaboration with OpenAI that brings ChatGPT and Codex into its applications, and it will add Google's TPUs and other chips to its cloud. Oracle shares rose, but they remain down more than 30% this year.
Oracle announced on Tuesday an expanded collaboration with OpenAI that puts ChatGPT and Codex inside the software maker's applications to make databases more actionable. Oracle shares were up nearly 5% on the day.
Mahesh Thiagarajan, Oracle's president of Cloud Infrastructure, spoke at Oracle AI World in Las Vegas. According to CNBC, he said using ChatGPT "allows anybody to build an application, deploy it, manage it."
Oracle's cloud adds Google, OpenAI and Cerebras chips
Oracle also said it is making Google's tensor processing unit AI chips and OpenAI's Jalapeño chip available on its cloud infrastructure. Cerebras hardware will also run on Oracle Cloud Infrastructure.
CNBC reports it is the first time Google's custom chips will run on another hyperscaler's cloud. Cerebras stock climbed about 8% after the news, and a Cerebras spokesperson said the deal is material but declined to disclose its scale because the company is in a quiet period.
Thiagarajan said chip scarcity remains an ongoing issue and that customers like OpenAI can benefit from a choice of accelerators. Asked whether the move marks a pivot away from Nvidia GPUs, he said no, adding that Nvidia chips are the best and most fungible.
Investors look to Oracle's investor day
The announcement came one day after Anthropic filed its S-1 as it heads toward an initial public offering.
Oracle's finances remain a concern. Its shares are down more than 30% this year, due in part to concerns about how it plans to finance its digital infrastructure pipeline. Investors now count down to Oracle's investor day, where they will want to see whether the company can back its fiscal year 2030 revenue targets.
The company also faces local pushback on its New Mexico data center, Project Jupiter. A hearing on air quality permitting is scheduled for Dec. 7 in Sunland Park, and Oracle maintains the project is on schedule.
Source: CNBC
Trading involves risk.
Risk Disclaimer
