Oracle Corp. announced a significant expansion of its artificial intelligence (AI) cloud infrastructure on Tuesday, a multi-gigawatt partnership centered on NVIDIA Corp.’s Vera Rubin platform alongside a diversification push into hardware from Google, Cerebras Systems Inc., and SambaNova Systems Inc.
The announcements at Oracle’s annual AI World conference in Las Vegas underscore the company’s bid to establish Oracle Cloud Infrastructure (OCI) as an adaptable hub for the broader compute landscape.
Under the expanded alliance, Oracle will offer NVIDIA’s Vera Rubin NVL72 architectures and standalone Vera central processing units.
The integration of standalone CPUs addresses an emerging architectural bottleneck: while graphics processing units handle the heavy computational demands of training foundational models, agentic workflows require substantial CPU bandwidth to run tools, execute code, and retrieve database records. By decoupling CPU and GPU allocations, the companies aim to curtail idle hardware overhead.
However, Oracle is not relying solely on NVIDIA.
The cloud provider confirmed it will deploy its proprietary Acceleron networking chips within certain NVIDIA clusters, bypassing NVIDIA’s native networking components. In tandem, Oracle is opening OCI to external silicon, onboarding Alphabet’s Tensor Processing Units (TPUs) for the first time, as well as specialized inference hardware from Intel Corp.-backed SambaNova and Cerebras Systems.
“Different AI workloads have different compute needs,” said Mahesh Thiagarajan, president of Oracle Cloud Infrastructure. “That choice gives customers the flexibility to choose the right infrastructure for the performance, throughput, and economics of each AI workload.”
The inclusion of alternative processors targets the competitive inference segment, where systems execute trained models in response to direct user queries. While NVIDIA maintains near-total dominance over high-end training clusters, enterprise buyers have grown increasingly cost-conscious regarding ongoing operational deployments.
That shift coincides with mounting scrutiny over actual compute efficiency. Industry surveys from VentureBeat Intelligence reveal that nearly 80% of surveyed enterprise organizations report GPU utilization rates hovering at or below 50%.
For corporate customers, Oracle’s architectural flexibility presents an opportunity to address pipeline constraints such as data bottlenecks and CPU throttling without committing surplus capital to underutilized accelerators.
The aggressive buildout also comes as Wall Street reassesses the financial burden of the global AI infrastructure race. Oracle maintained an ambitious capital expenditure projection of $90 billion to $95 billion for fiscal 2027, noting that enterprise clients are increasingly funding dedicated silicon commitments directly.
Despite an initial lift during early conference trading, investor sentiment remains disciplined. Oracle shares have fallen more than 50% over the past 12 months amid persistent concerns regarding the capital intensity of cloud expansion.
Even bullish analysts have tempered expectations; ahead of Oracle’s analyst presentation on Wednesday, Wells Fargo affirmed an Overweight rating on the stock while trimming its price target from $280 to $250.
Oracle will present its comprehensive financial and infrastructure roadmap to Wall Street analysts on Wednesday.
