According to https://access.redhat.com/articles/rhel-limits , RHEL 7 on POWER system can "only" manage 32TB of memory, (the whole system has more than a petabyte of memory) assuming they don't run a modified version. So there is definitely not only one OS running, I guess.
Still, the goal of an OS, especially an Unix-like "Time Sharing" OS, is to manage resources. I wonder how hard it would be for the Linux kernel to manage the entire system (with some virtual devices to aggregate all the nodes in one system, even if they are at the opposite side of the room), and if all the developed code about scheduling could be reused at that scale.