Oracle integrates ChatGPT and Codex into its applications and expands its cloud chip lineup
CNBC
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Oracle announced on Tuesday an expansion of its collaboration with OpenAI, incorporating ChatGPT and Codex into its software applications to enhance the operability of databases. The company also stated that it is offering more hardware options on its cloud infrastructure, including Google's TPU AI chips and OpenAI's Jalape No chips. Meanwhile, the market is paying attention to its large-scale data center projects and the upcoming Investor Day.
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Oracle announced on Tuesday an expansion of its collaboration with OpenAI, incorporating the ChatGPT and Codex of this artificial intelligence laboratory into its software applications in order to make databases more operational.

Oracle Cloud Infrastructure President Mahesh Thiagarajan stated at the Oracle AI World conference held in Las Vegas that using ChatGPT "enables anyone to build, deploy, and manage applications."

OpenAI CEO Sam Altman is expected to take the stage at 12:40 p.m. on Tuesday (Eastern Time) alongside Oracle's Co-CEO Clay Magouyrk to deliver a keynote speech on Oracle AI World.

For OpenAI, this announcement is another example of its advancement into the corporate market. Just the day before, its main competitor Anthropic had just submitted the S-1 documents, moving towards its initial public offering (IPO).

The Oracle database plays a key role in supporting the data recording and security of enterprises in industries such as healthcare and finance.

Thiagarajan said that his team observed that OpenAI's GPT-6 Astra model was trained at Oracle's Stargate data center campus in Abilene, Texas, and they saw real-time benefits.

OpenAI, President and Co-Founder, stated in a press release: "As we make it easier for people to utilize AI through the tools and systems they are already using, more and more enterprises are choosing OpenAI."

Oracle also stated on Tuesday that it is providing different hardware on its cloud infrastructure, including Google's Tensor Processing Units ( TPU ), AI chips, as well as OpenAI's Jalape ño chips.

Thiagarajan said, "Currently, customers have virtually unlimited possibilities when it comes to driving AI."

This is the first time that Google's custom chip has run on the cloud of another large-scale cloud service provider, which also indicates that these companies are making increasing efforts to hand over their hardware to cutting-edge laboratories.

Thiagarajan added that the chip shortage remains a persistent issue, while customers like OpenAI can benefit from having a variety of accelerators to choose from. When asked if this means Oracle is shifting away from NVIDIA GPU to other solutions, Thiagarajan stated that this is not the case, noting that NVIDIA chips are "the best and most versatile," and that the AI market is still extremely large.

The Jalapeno chip of OpenAI and Cerebras will also run on Oracle Cloud Infrastructure. A spokesperson for Cerebras stated that this transaction is of substantial significance, but since the company is in a quiet period, the scale will not be disclosed.

It has been seven months since this announcement was made, and it was only seven months after market-leading cloud service provider Amazon Web Services ( AWS ) announced its plan to introduce Cerebras hardware into its data centers. At that time, it was seen as an important validation.

Thiagarajan also mentioned Oracle's data center project in New Mexico, which cost billions of dollars, Project Jupiter, as well as the ongoing opposition from the local community. He said that Jupiter is just one of the 30 to 40 different data center projects that the company is advancing on a quarterly basis.

He said, "We're actually not too worried about what we're doing, because I believe we're building global infrastructure."

A hearing held regarding air quality permits is scheduled to take place on December 7th at Sunland Park. Construction has already begun on this controversial data center. Political opposition related to the project prompted Oracle to issue a force majeure notice to its supporters Blue Owl Capital last month. Oracle still indicates that the project is progressing as planned.

Investors are now eagerly awaiting Oracle's Investor Day, during which they hope to see whether the company will be able to meet its revenue targets for the fiscal year 2030, as well as whether there have been any changes in the profit margins of its cloud business transactions due to rising capital costs.

A report written by Bank of America analysts to their clients states that they expect to receive more clarifications on the latest progress of Oracle's major data center projects during the meeting.

Due to concerns in the market about how the company will finance its ambitious digital infrastructure initiatives, Oracle's stock price has fallen by more than 30% this year.

— CNBC's Jordan Novet has contributed to this article.

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