Oracle (ORCL, Financial) just signed a blockbuster cloud deal worth up to $30 billion a year with G42, the Abu Dhabi-based AI firm with growing global reach. The agreement, spread across multiple years, is focused on building AI-optimized cloud data centers, particularly in the U.S., where demand for training large AI models is exploding. G42 will become one of Oracle's largest customers—and potentially one of its most strategic—by anchoring core workloads on Oracle Cloud Infrastructure (OCI), with the goal of scaling generative AI, LLMs, and other compute-heavy use cases.
Here's where it gets interesting: G42 is already using Tesla (TSLA, Financial)'s Dojo chips to train some of its advanced AI models. And as part of the new partnership, Oracle data centers will now be optimized to handle Dojo-based workloads for G42. This doesn't mean Tesla's selling its chips to Oracle directly. But it does open the door for deeper integration of Tesla's hardware stack into one of the fastest-scaling AI infrastructure deployments globally—without Tesla having to build the data centers themselves.
While Tesla hasn't commented on the arrangement, the ripple effects could be real. This setup could expand the reach of Tesla's custom compute hardware, helping validate the Dojo architecture beyond just internal FSD training. If Oracle and G42 deliver on their cloud scale-up, Tesla may quietly benefit from growing demand for its AI stack—especially as new use cases for vision, autonomy, and robotics take shape. Investors tracking Tesla's long-term AI optionality should keep an eye on how this plays out.
