Oracle integrates ChatGPT and Codex into apps, expanding cloud chip lineup

oracle on Tuesday announced an expanded collaboration with OpenAI This will incorporate the Artificial Intelligence Lab’s ChatGPT and Codex into software manufacturers’ applications, making the database more practical.

Mahesh Thiagarajan, Oracle’s president of cloud infrastructure, told CNBC at Oracle AI World in Las Vegas that ChatGPT “enables anyone to build, deploy and manage applications.”

OpenAI CEO Sam Altman will join Oracle co-CEO Clay Magowyk on stage for the keynote address at Oracle AI World on Tuesday at 12:40pm ET.

For OpenAI, the announcement marks another example of Frontier Labs moving into the enterprise market just one day after a major competitor. humanhas filed an S-1 for an initial public offering.

Oracle databases play a critical role in logging and protecting data, supporting businesses across healthcare and finance.

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

“More companies are choosing OpenAI by making it easier to leverage AI through the tools and systems they already use,” Greg Brockman, president and co-founder of OpenAI, said in a press release.

Oracle announced Tuesday that it is making a wide variety of hardware accessible on its cloud infrastructure. googletensor processing unit AI chip and OpenAI’s Jalapeño chip.

“Customers now have virtually limitless possibilities in terms of how they can leverage AI,” Thiagarajan said.

This is the first time Google’s custom chips will run on another hyperscaler’s cloud, showing how companies are exploring opportunities to get their hardware into Frontier Labs’ hands.

Thiagarajan added that the chip shortage remains an ongoing issue and that customers like OpenAI benefit from having a variety of accelerators to choose from. this is, Nvidia Thiagarajan said “no” when it comes to GPUs, adding that Nvidia chips are “the best and most fungible” and that the AI ​​market is still incredibly large.

OpenAI’s jalapeno chips and cerebrum It also runs on Oracle Cloud Infrastructure. The deal with Cerebra is significant, but the AI ​​chip maker will not reveal its size because it is in a quiet period, a Cerebras spokesperson said.

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

The announcement comes seven months after the market-leading cloud. Amazon Web Services announced plans to deploy Cerebras hardware, a key validation point, in its data centers.

Thiagarajan also mentioned Oracle’s multi-billion New Mexico data center, called Project Jupiter, and the continued backlash it has received from the local community. He said Jupiter is just one of 30 to 40 different data center projects the company develops each quarter.

“Actually, we’re not too worried about what we’re doing because we think we’re building a world-class infrastructure,” he said.

A public hearing on the air quality permit is scheduled for Dec. 7 in Sunland Park, where the controversial data center has already broken ground. Political backlash related to the project prompted Oracle to issue force majeure notice to backers blue owl capital last month. For now, Oracle insists the project is on track.

Investors are currently counting down to Oracle’s Investor Day, and they will want to see whether the company can meet its fiscal year 2030 revenue goals and whether the higher cost of capital has changed the profitability of cloud deals.

bank of america Analysts wrote to customers that updates on Oracle’s major data center projects are among the topics expected to see clarity at the meeting.

Oracle’s stock price has fallen more than 30% this year, due in part to concerns about how the company plans to fund its ambitious digital infrastructure pipeline.

—CNBC’s Jordan Novet contributed to this article