Oracle has expanded its partnership with OpenAI, bringing ChatGPT and the Codex coding tool directly into its business applications, and opened its cloud infrastructure to rival AI hardware — including Google’s custom chips for the first time.
The announcements came on Tuesday at Oracle AI World in Las Vegas, where Oracle co-CEO Clay Magouyrk appeared on stage with OpenAI CEO Sam Altman.
Oracle shares rose nearly 5% on the day, according to market reports, as investors welcomed the deeper AI tie-up.
ChatGPT and Codex move into Oracle’s software
Under the expanded collaboration, ChatGPT and Codex will be integrated into Oracle’s enterprise applications and database products, so business users can query company data and build, deploy and manage application services in plain language. Oracle is pitching the tools at sectors such as healthcare and finance, where its databases already underpin critical operations.
Oracle also unveiled a suite of four offerings built on the partnership: Oracle AI Workspace, Oracle AI Security Mesh, Oracle App Composer and an Oracle AI bundle for smaller businesses. The company says the suite is aimed at employees, IT teams, security professionals and founders, and is designed to put frontier AI into everyday business operations rather than leaving it as a separate chatbot.
OpenAI president Greg Brockman said more businesses are choosing OpenAI as it becomes easier to put AI to work through the tools companies already use. Oracle’s cloud infrastructure chief, Mahesh Thiagarajan, said through ChatGPT “anyone can build an application, deploy it, manage it.”
Google TPUs arrive on a rival cloud
Alongside the software deal, Oracle said its cloud infrastructure, Oracle Cloud Infrastructure (OCI), will offer Google’s tensor processing units (TPUs), OpenAI’s in-house Jalapeño chip and hardware from Cerebras Systems, alongside Nvidia’s graphics processors. It is the first time Google’s custom AI chips will run on another major cloud provider’s infrastructure.
Google’s eighth-generation TPU systems will arrive on OCI in calendar year 2027, ramping up over a multi-year deployment, with Oracle supplying the data-centre networking, power and cooling to host them at scale.
Thiagarajan said tight chip supply remains a challenge and that letting customers choose different accelerators is a practical way to expand AI computing supply. He stressed the move does not mean Oracle is turning away from Nvidia, describing Nvidia’s chips as the most versatile products on the market and saying the AI market is large enough for multiple architectures to coexist.
Why it matters
The announcements show how quickly the old boundaries between AI rivals are blurring. Hyperscalers have historically treated their own AI chips as walled gardens, keeping developers tied to one cloud. By hosting Google’s chips alongside Cerebras hardware and OpenAI’s own silicon, Oracle is positioning its data centres as a multi-architecture hub for companies struggling to secure computing power.
For OpenAI, the deal deepens an already close relationship with Oracle. The two companies are partners on the Stargate data-centre project, and the expanded software deal gives OpenAI a direct route into the enterprise market through Oracle’s existing customer base.
There are risks too. Oracle is carrying out multibillion-dollar data-centre builds while investors watch its cloud margins and financing closely, and its shares have fallen sharply this year despite Tuesday’s bounce. The new offerings will be judged on whether businesses actually adopt them — not on the breadth of the announcement.
What we still don’t know
Oracle has not published full pricing, availability dates or customer numbers for the four new offerings, and product direction and release timing may change. The Google TPU deployment begins in 2027, so customers will not see the new hardware options immediately.
Sources
CNBC (Seema Mody) via Techmeme summary: Oracle adds ChatGPT and Codex to its app stack and expands OCI lineup with Google TPUs, OpenAI’s Jalapeño chip and Cerebras hardware — https://frontiernewswire.com/s/oracle-adds-chatgpt-and-codex-to-its-app-stack-and-expands-oracle-623edc84
Silicon Report: Oracle to offer Google TPUs on its cloud infrastructure — https://www.siliconreport.com/oracle-to-offer-google-tpus-on-its-cloud-infrastructure
Crypto Briefing: Oracle co-CEO Clay Magouyrk shares the stage with Sam Altman at Oracle AI World — https://cryptobriefing.com/oracle-magouyrk-sam-altman-ai-world/
Unite.ai: Oracle Expands OpenAI Partnership With Four Enterprise AI Offerings — https://www.unite.ai/oracle-expands-openai-partnership-with-four-enterprise-ai-offerings/
