Oracle is embedding ChatGPT and Codex in its apps and adding Google AI chips

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Google's TPUs are due on Oracle Cloud Infrastructure in 2027, the first time they will be offered on a hyperscale cloud outside Google

Samuel Boivin/NurPhoto via Getty Images

Oracle $ORCL announced an expanded collaboration with OpenAI on Tuesday, a deal that puts ChatGPT and Codex inside its enterprise applications. The company also said Google $GOOGL's AI chips will be available on Oracle Cloud Infrastructure (OCI). Both announcements came at Oracle AI World in Las Vegas.

Under the OpenAI deal, Oracle AI Workspace will let employees use ChatGPT plugins to access information and complete approved business workflows across Oracle Fusion Applications, Oracle NetSuite, Oracle AI Database and OCI, the company said. Oracle App Composer will let employees build applications with Codex, while Oracle manages deployment and operations on OCI.

Oracle AI Security Mesh, a managed service that uses OpenAI cyber models, is designed to help customers find and fix vulnerabilities across OCI, other clouds and on-premises environments. Oracle AI SMB Bundle is free to start and provides $12,000 in Oracle cloud credits each year. It includes ChatGPT Business, Oracle AI Workspace, Codex, Oracle App Composer, OCI and NetSuite QuickStart. Terms, conditions and restrictions apply.

"OpenAI is transforming how enterprises solve business problems, from chat, to coding, to analytics, to autonomous agents," Oracle CEO Clay Magouyrk said in a statement.

"More businesses are choosing OpenAI as we make it easier to put AI to work through the tools and systems they already use," OpenAI President and co-founder Greg Brockman said in a statement.

Separately, Oracle and Google said Google's Tensor Processing Units will be available through OCI. It marks the debut of the chips on any hyperscale cloud platform other than Google's own. The chips will be available in calendar year 2027 and will ramp over a multi-year period, the companies said. OCI will provide the power, cooling and datacenter networking to deploy them at scale.

"Bringing Google TPUs to OCI gives customers access to multiple leading AI compute architectures in one cloud," Mahesh Thiagarajan, president of Oracle Cloud Infrastructure, said in a statement.

OpenAI's Jalapeño chip and Cerebras systems are also headed to OCI, according to CNBC. A Cerebras spokesperson called the agreement significant but said the company is withholding details on its size while it is under a quiet period, according to CNBC.

Thiagarajan told CNBC the move is not a pivot away from Nvidia $NVDA GPUs, which he called "the best, most fungible." He said chips are still hard to come by and that customers such as OpenAI are better served when they can pick among several types of accelerators.

Cerebras shares rose roughly 8% on the announcement, while Oracle stock gained almost 5% during Tuesday's session.

Oracle stock had climbed in September as OpenAI's GPT-6 Astra model drew positive reception.

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