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Oracle Widens AI Chip Choice on Cloud

Oracle says its cloud will scale Nvidia's Vera Rubin AI systems to multi-gigawatt size and become the first big cloud outside Google to offer Google's TPU chips, as it pitches chip choice to AI customers.

Oracle (NYSE: ORCL), the cloud and database software group, said today it will expand Nvidia’s Vera Rubin AI systems on its cloud to multi-gigawatt scale and add Google’s chips. The announcements came at its AI World conference.

Oracle shares closed up 3.6% at $130.56 in today’s US session. The conference announcements fell on the same day, ahead of an investor day this week.

ORCL.US

Oracle and Nvidia (NASDAQ: NVDA) said they plan to expand Oracle Cloud Infrastructure (OCI) Superclusters with Vera Rubin NVL72 systems to multi-gigawatt scale. Vera Rubin NVL72 and Nvidia’s Vera CPUs are now generally available on OCI.

Oracle also said Google (NASDAQ: GOOGL) TPUs, its in-house AI chips, will be available through OCI in calendar 2027, ramping over several years. It is the first time TPUs have been offered on a large cloud outside Google’s own.

Reuters reported that Oracle also plans chips from Cerebras and SambaNova, and that the Nvidia systems will use Oracle’s Acceleron networking in place of some Nvidia networking chips. Cerebras chief executive Andrew Feldman said the arrangement widens his company’s base of top-tier customers.

Oracle’s argument is that no single chip suits every job. Mahesh Thiagarajan, president of OCI, put it this way:

Bringing Google TPUs to OCI gives customers access to multiple leading AI compute architectures in one cloud.

Mahesh Thiagarajan, Oracle

Oracle did not disclose deal values or how it will finance the build-out. The company kept its fiscal 2027 capital spending target of about $90bn to $95bn, and said on last month’s earnings call that customers are increasingly paying for chips.

Management is due to address investors at its investor day this week, where financing and spending are the open questions.

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