Google's TPUs Leave Google's Cloud for the First Time as Oracle Signs On and OpenAI Reportedly Plans a Purchase

LAS VEGAS - Google’s homegrown AI chips are heading to a rival’s data centers. Oracle said Tuesday at its Oracle AI World conference that Google’s Tensor Processing Units will be available through Oracle Cloud Infrastructure, the first time Google TPUs will be offered on a hyperscale cloud platform outside Google. Later the same day, The Information reported that OpenAI plans to buy Google’s AI chips, according to Reuters, which cited the report.

Screenshot: @OracleCloud on X

The Oracle deal is a plan, not a product customers can order today. According to Oracle’s announcement, TPUs on OCI will be available in calendar year 2027 and ramp over several years, and an Oracle infrastructure blog post said the rollout will reach gigawatt scale. Oracle will supply the power, cooling and data center networking. Neither company disclosed regions, capacity or pricing. Google’s eighth-generation lineup splits into two chips: TPU 8t for training, which Google says delivers nearly three times the compute performance per pod of the previous generation, and TPU 8i for inference and the repeated back-and-forth work of AI agents.

“Different AI workloads have different compute needs,” said Mahesh Thiagarajan, president of Oracle Cloud Infrastructure. “Bringing Google TPUs to OCI gives customers access to multiple leading AI compute architectures in one cloud.” Amin Vahdat, Google’s chief technologist for AI and infrastructure, said “the next generation of AI will require a diverse range of compute.”

Image: Google

Oracle is building a menu rather than picking a side. It said Nvidia Vera Rubin NVL72 systems and Vera CPUs are now generally available on OCI, with plans for multigigawatt expansion. It also plans AMD EPYC-based E7 instances, Intel Diamond Rapids-based X14 offerings, SambaNova SN50 systems and Cerebras wafer-scale inference, with Cerebras planned for 2027. CNBC reported that OpenAI’s Jalapeño chip will run on OCI as well. Asked whether the move marks a pivot away from Nvidia, Thiagarajan told CNBC it does not, calling Nvidia’s chips “the best, most fungible.”

*Video: CNBC Television / YouTube*

The OpenAI report adds a second buyer for Google’s chips. The Information did not disclose financial terms or volumes, Reuters said. OpenAI declined to comment, and Google did not immediately respond to a Reuters request for comment. OpenAI is already one of the largest buyers of Nvidia’s GPUs, and Reuters reported in June 2025 that it had begun renting Google’s chips. Last week OpenAI said it would make its frontier models available through Google Cloud. In June it unveiled its first custom AI chip, designed with Broadcom, and said it planned to deploy that processor by the end of this year.

For Google, the two moves turn an internal advantage into something closer to a product line. Google began selling TPUs directly to some customers this year, and Alphabet chief financial officer Anat Ashkenazi has said the company expects to begin recognizing a small percentage of revenue from TPU sales agreements by the end of 2026, with the vast majority in 2027, Reuters reported.

Image: Oracle

The chips were only part of Oracle’s day. The company also said it will bring OpenAI’s ChatGPT and Codex into its applications, and OpenAI chief executive Sam Altman joined Oracle co-CEO Clay Magouyrk on stage. “More businesses are choosing OpenAI as we make it easier to put AI to work through the tools and systems they already use,” OpenAI president Greg Brockman said in the release, CNBC reported.

Screenshot: @TheRegister on X

Investors liked what they heard. Oracle shares rose nearly 5% on Tuesday and Cerebras climbed about 8%, according to CNBC, though Oracle’s stock is still down more than 30% this year on worries about how it will pay for its data center buildout. The chip suppliers are getting closer to their customers in other ways too: Nvidia said this week it will put $3 billion into Meta’s stock offering. Alphabet reports quarterly results later on Wednesday, with investors watching for signs that AI spending is still lifting its cloud business.