AMD is set to deploy 50,000 artificial intelligence chips inside Oracle data centers starting in the second half of 2026, adding a significant new cloud partner as competition in high-performance accelerators intensifies. The companies announced that Oracle will use AMD’s most advanced Instinct MI450 graphics processing units for both training artificial intelligence models and inference workloads, aligning Oracle’s infrastructure strategy with the same hardware that OpenAI plans to adopt. Financial terms of the agreement were not disclosed, and neither company provided additional details in response to questions.
The Oracle deal arrives just eight days after AMD signed a multi-billion-dollar partnership to supply chips to OpenAI, a pair of wins that collectively strengthen AMD’s challenge to Nvidia’s dominant position in the artificial intelligence chip market. Oracle executives expressed confidence that demand will be particularly strong for AMD in inference, with Oracle Cloud Infrastructure senior vice president Karan Batta saying, “We feel like customers are going to take up AMD very, very well – especially in the inferencing space.” Investor reaction was more muted than after AMD’s OpenAI announcement: AMD shares opened about 2.5% on Monday’s close, compared with a 27% surge following last week’s OpenAI deal, while Oracle shares opened up 2.2% before reversing to trade down as much as 5% in morning trading.
The agreement extends a broader network of artificial intelligence infrastructure partnerships among large technology and chip companies. On Monday, Broadcom and OpenAI confirmed a deal for 10 gigawatts of custom artificial intelligence accelerators, underscoring a growing push to secure massive compute capacity. Last month, Nvidia announced that OpenAI will gain access to 10 gigawatts of GPUs, alongside a $100 billion investment from the chipmaker, further raising the stakes in the race to supply large-scale systems. In July, OpenAI expanded its relationship with Oracle in a separate arrangement to develop up to 4.5 gigawatts of artificial intelligence compute capacity in a deal worth more than $300 billion over five years, positioning Oracle as a key cloud partner in the buildout of artificial intelligence infrastructure.
