Oracle Cloud Infrastructure on Tuesday announced it will deploy 50,000 Advanced Micro Devices graphics processors starting in the second half of 2026.
AMD shares climbed about 2%. Oracle shares sank 4% while Nvidia was more than 3% lower.
The move is the latest sign that cloud companies are increasingly offering AMD’s graphics processing units as an alternative to Nvidia’s market-leading GPUs for artificial intelligence.
“We feel like customers are going to take up AMD very, very well — especially in the inferencing space,” said Karan Batta, senior vice president of Oracle Cloud Infrastructure.
Oracle will use AMD’s Instinct MI450 chips, which were announced earlier this year.
They are AMD’s first AI chips that can be assembled into a larger rack-sized system that enables 72 of the chips to work as one, which is needed to create and deploy the most advanced AI algorithms.
OpenAI CEO Sam Altman appeared with AMD CEO Lisa Su at a company event in June to announce the product.
Earlier this month, OpenAI announced a deal with AMD for processors requiring 6 gigawatts of power over multiple years, with a 1-gigawatt rollout starting in 2026. As part of the deal, and if the deployment goes well, OpenAI may end up owning as many as 160 million shares of AMD, or about 10% of the company.
In September, OpenAI entered into a five-year cloud deal with Oracle that could be worth as much as $300 billion.
OpenAI has historically been closely linked with Nvidia, whose chips were used to develop ChatGPT. Nvidia’s chips dominate the market for data center GPUs with more than 90% market share. Nvidia also invested in OpenAI in September.
But OpenAI leaders say the company needs as much computing power as possible, which means it needs AI chips from multiple suppliers. OpenAI also has plans to design its own AI chips with Broadcom.
“I think AMD has done a really fantastic job, just like Nvidia, and I think both of them have their place,” Batta said.
Tuesday at Oracle AI World, founder and Chairman Larry Ellison is set to take the stage and share his views on the latest OpenAI deal and what his company is doing to stay ahead of its main cloud competitors – Microsoft, Amazon and Google.
“Oracle has already shown it is willing to place big bets and go all in to meet the AI moment. The company must now prove that beyond capacity, it can capitalize on its massive underlying data and enterprise capabilities … to add meaningful value to the enterprise AI wave,” said Daniel Newman, CEO of The Futurum Group, on the sidelines of Oracle’s conference.
Oracle and AMD one-day stock chart.
