On Tuesday, Oracle announced a partnership with OpenAI to incorporate the AI lab's ChatGPT and Codex into its applications, aiming to make databases more actionable for users. Mahesh Thiagarajan, Oracle's president of Cloud Infrastructure, emphasized that this integration allows users to easily build, deploy, and manage applications.
This collaboration comes as OpenAI seeks to penetrate the enterprise market further, especially following the recent filing of its competitor Anthropic for an initial public offering. Oracle's database technology is critical for various sectors, including healthcare and finance, where data security and logging are paramount.
Additionally, Oracle is enhancing its cloud infrastructure by offering access to various hardware, including Google's tensor processing unit AI chips and OpenAI's Jalapeño chip, which could provide customers with more options for AI deployment. Thiagarajan noted that while there is a chip scarcity, having diverse accelerators available can benefit companies like OpenAI.
The announcement also included a mention of Oracle's ongoing Project Jupiter in New Mexico, which has faced community pushback but is still on schedule. Investors are keenly awaiting Oracle's upcoming investor day for updates on its ambitious revenue targets and the impact of rising capital costs on its cloud margins.
Oracle's stock rose nearly 5% following the news, while Cerebras, another AI chipmaker involved in the announcement, saw its stock increase by about 8%