Oracle (ORCL) Expands AI with ChatGPT Integration, New Cloud Chips

Published on 10/27/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

Oracle (ORCL) announced an expanded partnership with OpenAI, integrating ChatGPT and Codex into its applications to enhance database functionality. Mahesh Thiagarajan, Oracle's president of Cloud Infrastructure, highlighted that ChatGPT enables users to build, deploy, and manage applications through Oracle's platforms. This collaboration will be featured at Oracle AI World in Las Vegas with OpenAI CEO Sam Altman joining Oracle co-CEO Clay Magouyrk on stage.

Oracle is also broadening its cloud infrastructure hardware options by including Google's tensor processing unit (TPU) AI chips and OpenAI's Jalapeño chip. This is the first time Google's custom chips will operate on a non-Google hyperscaler cloud, providing customers with more AI acceleration choices amid ongoing chip scarcity. Oracle continues to utilize Nvidia GPUs, praised as highly versatile, acknowledging the vast AI market.

The AI chipmaker Cerebras will also run its technology on Oracle Cloud Infrastructure, but details on the scale remain undisclosed due to a quiet period. Following the announcement, Cerebras stock rose about 8%, and Oracle shares increased nearly 5%. This move illustrates Oracle’s commitment to expanding AI capability and hardware flexibility across its cloud services.

This integration matters for investors as Oracle aims to strengthen its competitive position in cloud AI services, potentially increasing demand for its cloud infrastructure through new AI hardware options and enhanced application capabilities.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

We think Oracle's move to integrate advanced AI models and diversify cloud hardware is a strategic effort to increase its competitiveness in the AI cloud market. The inclusion of Google and OpenAI chips alongside existing Nvidia GPUs shows flexibility that could appeal to a broader customer base. Continued chip scarcity could limit the pace of customer adoption, but Oracle's partnership with leading AI firms supports growth potential.

Key numbers

Cerebras stock increase: about 8%
Oracle shares increase: nearly 5%

What could help

Integration of ChatGPT and Codex can make Oracle's databases more actionable and user-friendly.
Adding Google and OpenAI AI chips diversifies hardware options to address chip scarcity.

What could hurt

Chip scarcity remains an ongoing issue despite offering multiple accelerator options.

What to watch next

OpenAI CEO Sam Altman will join Oracle co-CEO Clay Magouyrk for a keynote at Oracle AI World on Tuesday at 12:40 p.m. ET.

The background

AI integrations enhance software capabilities by automating tasks and improving data use. Cloud infrastructure upgrades expand hardware options for running AI models.

Questions readers ask

How is Oracle integrating ChatGPT into its services?

Oracle is integrating OpenAI's ChatGPT and Codex into its applications to make databases more actionable and to enable easier application building, deployment, and management.