Who could have predicted that the AI cloud sphere would more and more resemble a combination of various chips? Following a day at Oracle AI World’s Las Vegas event that mainly revolved around applications, day two brought an influx of chip news. Although Nvidia remains a dominant force, Oracle is broadening its horizons by working with other chip companies and moving beyond GPU architecture.
The most thrilling aspect for us is Oracle’s plan to offer access to Google’s custom TPUs (tensor processing units), making it the first hyperscaler to provide these chips outside of Google Cloud Platform. This is exciting because It’s somewhat peculiar, considering the situation became strange when Google decided to stop using TPUs as their hidden advantage and decided to provide them to a chosen group of clients.
They later revealed a partnership with Blackstone to establish another cloud platform powered by TPUs. It’s reasonable to believe that a) there’s an enormous demand for computational services (which we are aware of), and b) Google has an excess of TPUs that they don’t have the facilities or power capacity prepared for, preventing a valuable resource from remaining unused.
This information is dated October 2026. DCD discussed the partnership with Oracle, where Karan Batta, SVP of Oracle Cloud Infrastructure, stated: “This is not an experimental endeavor.” Oracle will make a significant cloud investment at a gigawatt scale over time. It’s best to view it as Google having our new TPU available from the start when they launch it.” In terms of commitment to deployment, this experiment is not significant, particularly when you agree to buy gigawatts of chips over multiple years.
However, there is a level of experimentation that contributes to the overall strategy. Batta states that in the present scenario, Oracle functions in a “supply-constrained environment, while costs are escalating, including memory and SSDs for storage.” Consequently, the company believes that providing people with greater flexibility and options leads to better decision-making.
Considering this, Oracle is in discussions about the manner in which significant clients procure capacity in regard to energy, committing to 100MW or potentially 1GW of capacity, several years ahead. “However, in three years, we cannot predict what the supply situation will be like.” It remains uncertain how the market will behave concerning pricing.
