Oracle, in effort to reduce reliance on Nvidia, adds AI chips from Google, Cerebras, and SambaNova

Oracle is implementing a strategic expansion of its hardware offerings within the Oracle Cloud Infrastructure. According to reports from Yahoo Finance, the company is adding AI chips from Google, Cerebras, and SambaNova as part of a broader effort to reduce its reliance on Nvidia. While Oracle is diversifying its sources, Reuters reports that the company is simultaneously expanding its existing chip supply deal with Nvidia. These hardware additions are designed to enhance the capabilities of Oracle's AI cloud services by providing a wider variety of processing options for its customers. Coverage from several major financial and news outlets highlights the immediate market reaction to these announcements. Yahoo Finance notes that Oracle's stock rose 5% following the news that Google TPUs are coming to the Oracle Cloud and the Nvidia deal is expanding.

Bloomberg and Quartz provide specific details on the partnership with Cerebras, stating that Oracle will offer Cerebras computers in its AI cloud service, with Quartz specifying that these chips will be available starting in 2027. Seeking Alpha notes that these new chip partnerships have caused Oracle to perk up ahead of its upcoming Investor Day. This shift occurs during a period of intense competition among cloud providers. Yahoo Finance observes that while Oracle's stock rose, Amazon's stock nudged higher and Microsoft's stock treaded water. The integration of Google TPUs into Oracle Cloud Infrastructure represents a significant cross-provider hardware arrangement. By incorporating chips from specialized firms like Cerebras and SambaNova alongside established giants like Google and Nvidia, Oracle is positioning its cloud infrastructure to support a more diverse range of AI workloads and hardware architectures.

Future developments will center on the deployment timelines and the specific impact on Oracle's cloud performance. Based on the reported timeline from Quartz, the market will be watching for the actual rollout of Cerebras AI chips in 2027. Additionally, the upcoming Investor Day mentioned by Seeking Alpha will likely provide more context on how these partnerships fit into Oracle's long-term financial and technical strategy. The company continues to balance its expanding relationship with Nvidia while integrating the new TPU and AI chip offerings from its other partners.