Key Points
- Oracle will add 50,000 of AMD’s latest AI chips to its cloud infrastructure. The move is a major win for AMD as it challenges Nvidia’s market dominance.
- It’s the latest sign that cloud companies are seeking alternatives to Nvidia’s GPUs.
- The deal strengthens the growing partnership between Oracle, AMD, and OpenAI.
- The deployment of the new chips will begin in the second half of 2026.
Oracle is making a major bet on AMD, announcing Tuesday that it will add 50,000 of the company’s powerful AI graphics processors to its cloud infrastructure. The deployment, which will begin in the second half of 2026, is a significant win for AMD as it tries to challenge Nvidia’s dominance in the booming AI chip market.
The move is the latest sign that major cloud providers are looking for alternatives to Nvidia’s expensive and hard-to-get GPUs. By offering AMD’s chips, Oracle is giving its customers a new option for their AI workloads, especially for “inferencing”—the process of using a trained AI model to generate responses.
Oracle will be using AMD’s latest Instinct MI450 chips, a product that was announced in June at an event featuring both AMD CEO Lisa Su and OpenAI CEO Sam Altman.
The deal further strengthens the growing partnership between Oracle, AMD, and OpenAI. Earlier this month, OpenAI announced a massive, multi-year deal to buy AI chips from AMD. And in September, OpenAI signed a colossal cloud deal with Oracle that could be worth as much as $300 billion.
While Nvidia still holds over 90% of the market for data center GPUs, the AI boom is so massive that there’s plenty of room for a strong second player. As one Oracle executive put it, “I think AMD has done a really fantastic job, just like Nvidia, and I think both of them have their place.”
