Oracle is making a major bet on AMD, announcing on Tuesday that it will deploy 50,000 of the chipmaker’s new graphics processors in its cloud data centers. The move is a significant win for AMD and another clear sign that cloud companies are looking for alternatives to Nvidia’s dominant, and often hard-to-get, AI chips.
The new chips, AMD’s Instinct MI450, are set to be deployed starting in the second half of 2026. These are AMD’s first AI chips that can be linked together into a massive, rack-sized system, which is exactly what’s needed to run the most advanced artificial intelligence. An Oracle executive said he believes customers will embrace AMD’s chips, “especially in the inferencing space,” which refers to the process of running an already-trained AI model.
The deal further solidifies the growing partnership between AMD and the AI giant OpenAI. Earlier this month, OpenAI announced its own massive deal with AMD, and it was OpenAI’s CEO, Sam Altman, who appeared on stage with AMD’s CEO first to announce the new MI450 chip. OpenAI also recently signed a massive five-year cloud deal with Oracle, which could be worth as much as $300 billion.
While Nvidia still dominates the AI chip market with over 90% market share, Oracle’s move indicates that the landscape is starting to shift. As the demand for AI computing power continues to explode, even the biggest players are realizing they can’t rely on a single supplier. “I think AMD has done a really fantastic job, just like Nvidia, and I think both of them have their place,” said an Oracle executive.
