Oracle announced at its Oracle AI World event in Las Vegas on 27 October that Google's TPU accelerators will be offered on Oracle Cloud Infrastructure. It is the first time Google's custom chips will run inside another hyperscaler's cloud. The TPUs are due in Oracle data centres from 2027, with capacity added gradually.
Two other chip lines join them. Oracle will add Cerebras wafer-scale accelerators and OpenAI's Jalapeño inference chip, which OpenAI said in August runs some open-source models 1.5 times faster than rival silicon. Cerebras called its Oracle deal material but would not give a size, citing a quiet period. Its shares rose about 8% on the day and Oracle's nearly 5%.
The expanded OpenAI partnership also reaches Oracle's software. ChatGPT and Codex will sit inside Oracle's business applications, so the chatbot can act in them on a worker's behalf. New services include an AI Workspace linking Oracle apps to ChatGPT, an App Composer that lets non-technical staff build custom software and scans it for vulnerabilities, and an AI Security Mesh that uses security-tuned OpenAI models to find and rank flaws. A free-to-start bundle for small firms adds ChatGPT Business, Codex and $12,000 a year in cloud credits.
Screenshot from CNBC's coverage of the Oracle AI World keynote in Las Vegas
Image: CNBC
Oracle's cloud infrastructure president, Mahesh Thiagarajan, said this is not a pivot away from Nvidia, whose GPUs he called the best and most fungible, but that chips stay scarce and customers like OpenAI want choice. OpenAI's Greg Brockman said more businesses pick OpenAI as it gets easier to use through tools they already have.
About Oracle
Oracle is an American technology company headquartered in Austin, Texas, co-founded in 1977 by Larry Ellison, Bob Miner and Ed Oates. It sells database software, enterprise applications and cloud infrastructure.
Its tie to OpenAI began as a data-centre deal. Project Stargate, the OpenAI, Oracle and SoftBank initiative, was announced in January 2025 at the White House. An Oracle filing in June 2025 hinted at a cloud agreement worth more than $30 billion a year, and in September 2025 OpenAI confirmed a purchase of roughly $300 billion of compute from Oracle over five years, with 4.5 gigawatts of capacity to be built.
The announcement comes as Oracle's shares are down more than 30% this year on financing worries. Last month it sent a force majeure notice to backer Blue Owl Capital over its Project Jupiter data centre in New Mexico, though Oracle says the project is on schedule. AWS announced plans to bring Cerebras hardware into its own data centres seven months ago. A Project Jupiter air-quality hearing is set for 7 December, and Oracle's investor day will test its fiscal 2030 revenue targets.
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