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An image depicting the partnership between OpenAI, Microsoft, and Oracle for AI compute capacity. The image features the logos of OpenAI, Microsoft, and Oracle prominently displayed. The background includes elements of AI technology, such as neural networks and data centers, representing the collaboration. A visual representation of chips and cloud infrastructure highlights the enhancement in compute power. The design incorporates vibrant colors and dynamic graphics, symbolizing innovation and technological advancement

Author: Alicia Shapiro

Estimated Read Time: 4 minutes

OpenAI to Leverage Oracle’s Chips for Enhanced AI Compute Capacity

OpenAI, in collaboration with Microsoft, has announced a new partnership with Oracle to expand its compute capacity for running ChatGPT. This strategic alliance aims to leverage Oracle's infrastructure to support the scaling needs of OpenAI's AI services.

Key Details of the Partnership

Expanded Compute Capacity

  • Infrastructure Needs: OpenAI CEO Sam Altman has highlighted the substantial infrastructure required to power its services. The partnership with Oracle is a step towards meeting these demands.

  • Oracle’s Contribution: Oracle’s chips will enable OpenAI to scale effectively, providing the necessary compute resources to handle increasing usage.

Collaboration Dynamics

  • Microsoft's Role: OpenAI continues to rely heavily on Microsoft’s Azure AI platform. Microsoft has invested $13 billion for a 49% stake in OpenAI’s for-profit subsidiary and holds exclusive rights to commercialize its technology.

  • Oracle’s Infrastructure: The partnership allows OpenAI to utilize the Azure AI platform on Oracle’s Cloud Infrastructure (OCI), facilitating the running of AI models in production, known as inference.

Statements and Clarifications

Official Statements

  • Sam Altman, CEO of OpenAI: Altman emphasized that Oracle’s chips are crucial for OpenAI’s ongoing scaling efforts.

  • OpenAI’s Follow-Up Statement: OpenAI reassured that their strategic cloud relationship with Microsoft remains unchanged. The new partnership with Oracle is complementary, enhancing the Azure AI platform’s capabilities on OCI infrastructure.

Operational Aspects

  • Model Training: OpenAI confirmed that the pre-training of its advanced models will continue on supercomputers developed in partnership with Microsoft.

  • Inference Needs: The partnership with Oracle focuses on meeting the inference needs for applications like ChatGPT.

Market and Industry Context

Competitive Landscape

  • Demand and Outages: OpenAI’s need for additional compute power is driven by growing demand and the necessity to avoid service outages.

  • Elon Musk's xAI: The collaboration with Oracle is notable given that Oracle also provides infrastructure to xAI, Elon Musk’s rival AI venture.

Strategic Importance

  • Scaling AI Services: The partnership underscores the critical role of scalable infrastructure in the AI industry. By diversifying its compute resources, OpenAI aims to enhance reliability and performance.

  • Market Perception: Both Microsoft and OpenAI are keen to maintain clarity on their ongoing strategic relationship, ensuring that the Oracle deal is seen as an expansion rather than a shift in alliances.


The partnership between OpenAI, Microsoft, and Oracle marks a significant step in addressing the compute needs for advanced AI applications. By leveraging Oracle’s chips and infrastructure, OpenAI is poised to scale its services effectively, ensuring continued growth and innovation in the AI sector.