Oracle To Deploy 50,000 AMD AI Chips In A Sign Of Growing Competition For Nvidia

Oracle Corp. (ORCL) on Tuesday announced that it will deploy 50,000 AI chips from Advanced Micro Devices Inc. (AMD), starting in the third quarter (Q3) of 2026 and through 2027.

Oracle will use AMD’s Instinct MI450 series graphics processing units (GPU), providing customers with an alternative to Nvidia Corp.’s (NVDA) AI chips platform.

“By bringing together the latest AMD processor innovations with OCI's secure, flexible platform and advanced networking powered by Oracle Acceleron, customers can push the boundaries with confidence,” said Oracle Cloud Infrastructure’s executive vice president, Mahesh Thiagarajan.

Oracle’s shares were down nearly 1% in Tuesday’s pre-market trade, while AMD’s shares rose more than 2%. Retail sentiment on Stocktwits around Oracle trended in the ‘extremely bearish’ territory at the time of writing, while users felt ‘bullish’ about AMD.

Thiagarajan added that Oracle and AMD’s partnership is a decade-long and goes all the way back to AMD’s EPYC accelerator. He touted the company’s price-to-performance ratio without mentioning rivals.

“With our AMD Instinct GPUs, EPYC CPUs, and advanced AMD Pensando networking, Oracle customers gain powerful new capabilities for training, fine-tuning, and deploying the next generation of AI,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions Business Group, AMD.

Oracle stated that its customers will get access to about 432 GB of HBM4 (high bandwidth memory) and 20 terabytes per second of memory bandwidth.

AMD’s partnership with Oracle comes days after the company landed a deal with OpenAI to deploy six gigawatts worth of AMD’s AI chips over multiple years. OpenAI will get an option to buy 160 million shares of AMD at one cent apiece, which is about 10% of the chipmaker based on its outstanding stock.

ORCL stock is up 85% year-to-date, while AMD stock is up 79%.

Get updates to this story developing directly on Stocktwits.

Also See: GM To Take $1.6 Billion Charge In Q3 As It Realigns Its EV Strategy

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