HPE and Oracle Expand AI Data Center Networking Collaboration in the U.S.

en.Wedoany.com Reported - On September 2, Hewlett Packard Enterprise (HPE) expanded its collaboration with Oracle, with Oracle planning multi-year deployments of HPE Juniper Networking routing and switching platforms across its global AI data centers, accompanied by multi-year network support services and financing arrangements. The two companies have previously engaged in over 10 years of network engineering collaboration, and the relevant equipment is already being used in Oracle Cloud Infrastructure (OCI) data centers and edge networks.

The potential deployment scope includes PTX and MX series routing platforms, as well as QFX and EX series switching platforms. Among these, MX and PTX routers are currently used in certain OCI edge networks, while QFX switches are deployed across multiple tiers of regional data center networks. Next-generation QFX switches will further be used in RoCEv2 AI backend networks, configured with high-density connectivity, dynamic load balancing, and congestion management capabilities.

Beyond hardware deployment, HPE and Oracle will jointly develop intelligent telemetry capabilities to monitor the operational status of devices and network fabrics, including metrics such as queue backlog, packet loss, traffic imbalance, and component performance degradation. The relevant telemetry features will be used for operational monitoring of Oracle's AI clusters, regional data centers, and edge networks.

A filing submitted by HPE to the U.S. Securities and Exchange Commission further reveals that the company issued warrants to Oracle on July 2, allowing Oracle to purchase up to 4,156,466 shares of HPE common stock at $0.01 per share. These warrants are directly linked to this strategic AI data center networking collaboration and will vest and become exercisable in tranches based on specific milestones related to Oracle's and its affiliates' procurement of HPE products and support services, with a validity period extending through June 25, 2029.

Currently, the two companies have not disclosed the total contract value, total equipment quantity, or the specific list of data centers involved in this potential multi-year deployment.