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Intel says it plans to expand Xeon computing on Oracle's cloud

Intel announced the planned multiyear collaboration on X, the same day Oracle said it is expanding its Nvidia deal, adding Google and Cerebras offerings and planning to offer Intel-backed SambaNova chips.

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Why it matters: Oracle is spreading its cloud chip bets across Nvidia, Google, Cerebras and Intel while, per Reuters, not disclosing how it will finance the chip purchases.

For information only, not investment advice. Prices delayed.

Tickers: INTC, ORCL

A large server processor with a nickel-plated lid sits in an anti-static tray on a workbench, beside a second chip flipped to show its gold contact pads.

Intel ($INTC) says it and Oracle ($ORCL) plan to put more Xeon processors to work in Oracle's cloud. Intel posted on X on Tuesday: "Intel and @OracleCloud announced plans to expand Intel Xeon-based computing on Oracle Cloud Infrastructure."

In the same post, Intel called it a planned multiyear collaboration meant to meet growing demand for enterprise applications, agentic AI and inference, and said it is expected to span current and future Xeon platforms. The wording is all plans and expectations, so for now it is an intention.

Intel had company in Oracle's chip news on Tuesday. Oracle said it is expanding its cloud AI chip deals with Nvidia while adding offerings from Nvidia rivals such as Alphabet's Google and Cerebras Systems, Reuters reported. Oracle also plans to offer chips from SambaNova Systems, which Reuters describes as Intel-backed. SambaNova and Cerebras both make chips for inference, the stage when AI systems answer users' requests.

The number to watch is the bill. Oracle, which plans to hold an investor day this week, did not disclose how it plans to finance the chip purchases, according to Reuters. Reuters noted that on last month's earnings call, Oracle said customers are increasingly paying for chips, and it held its fiscal 2027 capital spending target at about $90 billion to $95 billion. Oracle shares were up nearly 5% on Tuesday, CNBC reported.

Sources

  1. Intel and @OracleCloud announced plans to expand Intel Xeon-based computing on Oracle Cloud Infrastructure. Intended to meet growing demand for enterprise applications, agentic AI and inference, the planned multiyear collaboration is expected to span current and future Xeon https://t.co/2b2qu5xWtf, Intel (@intel) on X
  2. Oracle expands chip supply deal with Nvidia, adds Google and Cerebras offerings, Reuters (via CNA)
  3. Oracle integrates ChatGPT, Codex into apps, expands cloud chip lineup, CNBC

Tags: ai · semiconductors · big-tech