--- title: "Google sells TPUs into Oracle's cloud for the first time as Oracle's $90 billion chip plan still hedges Nvidia" description: "Google's TPUs enter another company's data center for the first time, beside Cerebras and SambaNova racks and an expanded Nvidia commitment, all announced in one morning. Oracle now carries the incumbent and its challengers on a $90 billion-plus annual spending plan." publisher: "The Inference" section: "Chips" published: 2026-10-27T18:17:33.338Z modified: 2026-10-27T18:17:33.338Z canonical: https://theinference.org/article/google-sells-tpus-into-oracle-s-cloud-for-the-first-time-as-oracle-s-90-billion-chip-plan-still-hedges-nvidia language: en keywords: "Oracle, Nvidia, Google, Cerebras, AI Chips, Data Centers" --- # Google sells TPUs into Oracle's cloud for the first time as Oracle's $90 billion chip plan still hedges Nvidia > Google's TPUs enter another company's data center for the first time, beside Cerebras and SambaNova racks and an expanded Nvidia commitment, all announced in one morning. Oracle now carries the incumbent and its challengers on a $90 billion-plus annual spending plan. At [Oracle](https://theinference.org/markets/companies/oracle)'s AI World conference in Las Vegas on October 27, one cloud signed four silicon suppliers in a single morning [1]. Google's Tensor Processing Units, the custom AI chips built for [Google](https://theinference.org/markets/companies/alphabet)'s own cloud, [will run inside Oracle Cloud Infrastructure from calendar 2027, the first time they have ever been sold into another company's data center](https://finance.yahoo.com/technology/ai/articles/oracle-brings-google-tpus-oracle-160700105.html) [1][2]. Cerebras, whose flagship processor is a single chip the size of a whole silicon wafer rather than one cut from it, follows in the same year [3]. [SambaNova](https://theinference.org/markets/companies/sambanova)'s SN50 racks and a deepened [Nvidia](https://theinference.org/markets/companies/nvidia) commitment complete the set [4][5]. ![A Google TPU v4 printed circuit board carrying four liquid-cooled TPU packages](https://storage.googleapis.com/theinference-public/img/02510f07117aeeff.png) *A TPU v4 board from Google's own system. The chips have run only inside Google's data centers; Oracle will host them from calendar 2027, the first outside sale. (Norman P. Jouppi et al. via arXiv and Wikimedia Commons)* ## Oracle pays for both sides of the fight The money behind the morning is Oracle's own. The company maintained a capital-spending target of about $90 billion to $95 billion for the fiscal year ending May 2027, and [said on its earnings call last month that customers increasingly foot the bill for the chips](https://www.msn.com/en-us/news/other/oracle-expands-chip-supply-deal-with-nvidia-adds-google-and-cerebras-offerings/ar-AA2gaS4O) [6]. *Chart: **Oracle's quarterly capital spending has overtaken its revenue** Column chart of Oracle's quarterly capital spending rising past its revenue, from $4 billion to $28.5 billion over eight quarters* *Capital expenditure and total revenue by calendar quarter, in US$ billions, from Oracle's SEC filings. Q3 '26 is the quarter ended August 31, 2026, the quarter the story cites: $28.5 billion of capex, free cash flow of negative $5.4 billion. [8]* Nvidia, the supplier being hedged, [booked $96.2 billion of revenue in the quarter ended July 26, 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001045810) [7] and has said roughly half its revenue comes from hyperscalers such as Oracle [1]. Oracle's free cash flow ran at negative $5.4 billion last quarter, on $28.5 billion of capital spending [8]. *Chart: **Nvidia books about $96 billion a quarter, the machine Oracle is hedging** Nvidia quarterly revenue climbing from $35.1 billion to $96.2 billion over eight quarters* *Reported quarterly revenue in US$ billions, from Nvidia's SEC filings. Q2 '26 is the quarter ended July 26, 2026. [7]* ## The hedge renews the dependency The same morning deepened what it hedged. Nvidia and Oracle [will expand Vera Rubin, Nvidia's newest generation of AI servers, to multi-gigawatt scale](https://www.globenewswire.com/news-release/2026/10/27/3389428/0/en/nvidia-and-oracle-expand-nvidia-vera-rubin-to-multi-gigawatt-scale-and-bring-nvidia-vera-cpu-to-oracle-cloud-infrastructure.html) [5], and Nvidia chief executive [Jensen Huang](https://theinference.org/markets/people/jensen-huang) has said each gigawatt can mean up to $40 billion of revenue for his company [6]. [OpenAI](https://theinference.org/markets/companies/openai) has trained and served GPT-6 Astra on an OCI Supercluster of more than 100,000 Blackwell GPUs in Abilene, Texas [5]. One carve-out: Oracle's Nvidia systems will skip some Nvidia networking chips in favor of Oracle's in-house Acceleron [6]. Oracle is financing Nvidia's challengers out of the same capital-spending plan that buys Nvidia. ## The market paid on Tuesday for 2027 revenue [Cerebras](https://theinference.org/markets/companies/cerebras-systems) traded up about 9.5 percent and Oracle about 4 percent [1]. [The Cerebras deal discloses no volumes and books no revenue until calendar 2027](https://www.globenewswire.com/news-release/2026/10/27/3389429/0/en/cerebras-and-oracle-team-up-to-bring-cerebras-ai-inference-to-oracle-cloud-infrastructure.html) [3][9], and analyst consensus compiled by [Bloomberg](https://www.bloomberg.com/news/articles/2026-10-27/oracle-to-offer-cerebras-systems-computers-in-ai-cloud-service) has the company under $1 billion of sales this year, tripling to almost $3 billion next [9]. Oracle, still down about 31 percent this year, grew cloud-infrastructure revenue 121 percent last quarter, with remaining performance obligations at $664 billion [10]. "That's a massive expansion of our customer base of tier-one customers," Cerebras chief executive Andrew Feldman told Reuters, which notes that Nvidia dominates training while inference, the work of answering live requests, is [the more open market](https://theinference.org/article/amd-s-inference-software-caught-up-with-nvidia-s-and-its-stock-still-fell-5-57), where Cerebras and [Intel](https://theinference.org/markets/companies/intel)-backed SambaNova compete [6]. ## The questions the morning left open For Nvidia holders, two questions no announcement answered: whether the Acceleron carve-out spreads, and whether Google sells TPUs into any other cloud. Oracle, which plans to hold an investor day this week [6], did not say how it will finance the chip purchases [6]. The signal to watch: whether OCI names paying customers for the TPU capacity before the 2027 ramp [10]. ## Takeaway Oracle put Google TPUs, Cerebras and SambaNova racks beside an expanded Nvidia commitment on one $90 billion-plus capex plan, sending Google's chips outside Google's cloud for the first time. ## Sources 1. [Yahoo Finance, Daniel Howley: Oracle, in effort to reduce reliance on Nvidia, adds AI chips from Google, Cerebras, and SambaNova, 27 October 2026](https://finance.yahoo.com/technology/article/oracle-in-effort-to-reduce-reliance-on-nvidia-adds-ai-chips-from-google-cerebras-and-sambanova-160000593.html) 2. [Oracle via PR Newswire (Yahoo Finance): Oracle Brings Google TPUs to Oracle Cloud Infrastructure, 27 October 2026](https://finance.yahoo.com/technology/ai/articles/oracle-brings-google-tpus-oracle-160700105.html) 3. [Cerebras Systems via GlobeNewswire: Cerebras and Oracle Team Up to Bring Cerebras AI Inference to Oracle Cloud Infrastructure, 27 October 2026](https://www.globenewswire.com/news-release/2026/10/27/3389429/0/en/cerebras-and-oracle-team-up-to-bring-cerebras-ai-inference-to-oracle-cloud-infrastructure.html) 4. [SambaNova via Business Wire: SambaNova and Oracle Collaborate to Bring High-Performance Inference to Oracle Cloud Infrastructure, 27 October 2026](https://www.businesswire.com/news/home/20261027598375/en) 5. [NVIDIA and Oracle via GlobeNewswire: NVIDIA and Oracle Expand NVIDIA Vera Rubin to Multi-Gigawatt Scale and Bring NVIDIA Vera CPU to Oracle Cloud Infrastructure, 27 October 2026](https://www.globenewswire.com/news-release/2026/10/27/3389428/0/en/nvidia-and-oracle-expand-nvidia-vera-rubin-to-multi-gigawatt-scale-and-bring-nvidia-vera-cpu-to-oracle-cloud-infrastructure.html) 6. [Reuters, Stephen Nellis (via MSN): Oracle expands chip supply deal with Nvidia, adds Google and Cerebras offerings, 27 October 2026](https://www.msn.com/en-us/news/other/oracle-expands-chip-supply-deal-with-nvidia-adds-google-and-cerebras-offerings/ar-AA2gaS4O) 7. [Nvidia, quarterly figures from its SEC filings, retrieved 27 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001045810) 8. [Oracle, quarterly figures from its SEC filings, retrieved 27 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001341439) 9. [Bloomberg, Ian King: Oracle to Deploy Cerebras Systems Hardware for AI Cloud Infrastructure, 27 October 2026](https://www.bloomberg.com/news/articles/2026-10-27/oracle-to-offer-cerebras-systems-computers-in-ai-cloud-service) 10. [24/7 Wall St., David Moadel: Oracle Rises 5% as Google TPUs Come to Oracle Cloud and NVIDIA Deal Expands, 27 October 2026](https://247wallst.com/investing/2026/10/27/oracle-rises-5-as-google-tpus-come-to-oracle-cloud-and-nvidia-deal-expands-amazon-nudges-higher-microsoft-treads-water/) --- Google sells TPUs into Oracle's cloud for the first time as Oracle's $90 billion chip plan still hedges Nvidia — The Inference. Canonical: https://theinference.org/article/google-sells-tpus-into-oracle-s-cloud-for-the-first-time-as-oracle-s-90-billion-chip-plan-still-hedges-nvidia