Oracle integrates ChatGPT and Codex into applications and expands its cloud chip portfolio

Oracle announced Tuesday an expanded collaboration with OpenAI which integrates ChatGPT and Codex from the artificial intelligence laboratory into the software maker’s applications to make databases more usable.

Mahesh Thiagarajan, Oracle’s president of cloud infrastructure, told CNBC at Oracle AI World in Las Vegas that using ChatGPT “allows anyone to build an application, deploy it, manage it.”

OpenAI CEO Sam Altman is expected 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, this announcement represents another example of the frontier lab’s breakthrough into the enterprise market, just one day after its main competitor, Anthropicfiled its S-1 as it heads toward an IPO.

Oracle’s database plays a crucial role in helping healthcare and financial companies store and secure data.

Thiagarajan said his team observed OpenAI’s GPT-6 Astra model training at Oracle’s Stargate data center campus in Abilene, Texas, and could see the benefits in real time.

“More and more companies are choosing OpenAI because we make it easier to implement AI with the tools and systems they already use,” said Greg Brockman, president and co-founder of OpenAI, in the press release.

Oracle also announced on Tuesday that it was making various hardware accessible on its cloud infrastructure, including GoogleAI chips from Tensor Processing Unit and OpenAI’s Jalapeño chip.

“Now customers can have endless possibilities for how they can drive AI,” Thiagarajan said.

This is the first time Google’s custom chips will run on another hyperscaler’s cloud, and it illustrates how companies are increasingly looking for opportunities to get their hardware into the hands of pioneering labs.

Thiagarajan added that chip scarcity remains a persistent problem and that customers such as OpenAI can benefit from choosing between different accelerators. When asked if this marked a turning point from Nvidia As for GPUs, Thiagarajan said no, adding that Nvidia chips are “the best, the most fungible” and that the AI ​​market remains incredibly large.

OpenAI’s Jalapeño chip and Cerebral will also run on Oracle Cloud Infrastructure. The deal with Cerebras is large, but the AI ​​chipmaker won’t disclose its size because it is in a quiet period, a Cerebras spokesperson said.

Cerebras stock rose about 8% following the news. Oracle shares rose nearly 5% on Tuesday.

This announcement comes seven months after the cloud leader Amazon Web Services announced plans to integrate Cerebras hardware into its data centers, a major validation point.

Thiagarajan also addressed New Mexico’s multibillion-dollar Oracle data center, nicknamed Project Jupiter, and the continued resistance it receives from the local community. He said Jupiter represents just one of 30 to 40 different data center projects in development each 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.

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

Investors are now counting on Oracle’s investor day, during which they will want to see whether the company can meet its fiscal 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 customers that updates on Oracle’s major data center projects were among the topics they expected clarification on at the meeting.

Oracle shares have fallen more than 30% this year, in part because of concerns about how the company plans to finance its ambitious digital infrastructure pipeline.

—Jordan Novet of CNBC contributed to this article