Oracle Integrates ChatGPT, Codex and Expands Cloud Chip Lineup

Mahesh Thiagarajan, Oracle's president of cloud infrastructure, told CNBC at Oracle AI World in Las Vegas that using ChatGPT "allows anybody to build an application, deploy it, manage it." OpenAI CEO Sam Altman is set to join Oracle co-CEO Clay Magouyrk on stage for an Oracle AI World keynote on Tuesday at 12:40 p.m. ET.

For OpenAI, the Oracle announcement is another example of its push into the enterprise market, one day after competitor Anthropic filed its S-1 as it heads toward an initial public offering, CNBC reported. Oracle's database underpins businesses across healthcare and finance in logging and securing data.

Thiagarajan said his team observed OpenAI's GPT-6 Astra model get trained at Oracle's Stargate data center campus in Abilene, Texas, and could see real-time benefits. Greg Brockman, president and co-founder of OpenAI, said in the press release: "More businesses are choosing OpenAI as we make it easier to put AI to work through the tools and systems they already use."

Oracle said customers can access Google's tensor processing unit AI chips and OpenAI's Jalapeño chip on its cloud infrastructure. Thiagarajan said: "Now customers can actually have infinite possibilities in terms of how they can drive AI." It is the first time Google's custom chips will run on another hyperscaler's cloud, according to CNBC.

Thiagarajan said chip scarcity remains an ongoing issue and customers like OpenAI can benefit from having different accelerators to choose from. Asked whether this marks a pivot away from Nvidia GPUs, he said no, adding that Nvidia chips are "the best, most fungible" and that the AI market remains incredibly large.

OpenAI's Jalapeño chip and Cerebras will also run on Oracle Cloud Infrastructure. A Cerebras spokesperson said the deal is material but the company won't disclose the scale because it is in a quiet period. Cerebras stock climbed about 8% following the news. Oracle shares were up nearly 5% on Tuesday.

The announcement comes seven months after market-leading cloud Amazon Web Services announced plans to bring Cerebras hardware into its data centers, a major point of validation.

Thiagarajan also addressed Oracle's multibillion New Mexico data center dubbed Project Jupiter and the pushback it is receiving from the local community. He said Jupiter represents just one of 30 to 40 different data center projects in development per quarter for the company. "We're actually not too worried about what we're doing because I think we're building global infrastructure," he said.

A hearing to address air quality permitting is scheduled for Dec. 7 in Sunland Park, where the controversial data center has already broken ground. The political pushback tied to the project prompted Oracle to deliver a force majeure notice to its backer Blue Owl Capital last month. Oracle maintains that the project is on schedule.

Investors are counting down to Oracle's investor day, where they want to see if the company can back its fiscal year 2030 revenue targets and whether the margin profile of its cloud deals has changed due to the rising cost of capital. Bank of America analysts wrote to clients that updates on Oracle's major data center projects are among the topics they expect clarity on at the meeting. Oracle shares are down more than 30% this year due in part to concerns about how the company plans to finance its ambitious digital infrastructure pipeline.

Separately, OpenAI announced iCloud Mail and Calendar plugin support for ChatGPT, 9to5Mac reported. The support lets users connect ChatGPT to Apple email and calendar like Gmail and other services. For iCloud Mail and Calendar users, it should enable connecting ChatGPT features such as the proactive agent Dots feature for the first time, the report said. The announcement specifically mentions ChatGPT compatibility on the web, desktop and iOS, and various features don't always work together as expected at first, according to 9to5Mac.