oracle Cloud Infrastructure announced Tuesday that it will deploy 50,000 advanced micro device Graphics processors will launch in late 2026.
AMD stock rose little by little. Oracle stock fell 2% and Nvidia stock fell more than 3%.
The move is the latest sign that cloud companies are increasingly offering AMD’s graphics processing units as replacements. Nvidia’s Market-leading GPU for artificial intelligence.
“We feel that customers will adopt AMD very well, especially in the inference space,” said Karan Batta, senior vice president of Oracle Cloud Infrastructure.
Oracle plans to use AMD’s Instinct MI450 chip, which was announced earlier this year.
These are AMD’s first AI chips that can be assembled into larger rack-sized systems, allowing 72 chips to work as one, needed to create and deploy the most advanced AI algorithms.
OpenAI CEO Sam Altman appeared with AMD CEO Lisa Su at an internal event in June to announce the product.
Earlier this month, OpenAI announced a deal with AMD for processors that will require 6 gigawatts of power over multiple years, with 1 gigawatt deployment starting in 2026. As part of the deal, if the rollout goes well, OpenAI could end up owning 160 million shares of AMD, or about 10% of the company.
OpenAI signed a five-year cloud contract with Oracle in September that could be worth up to $300 billion.
OpenAI has historically had a close relationship with Nvidia, whose chips were used to develop ChatGPT. Nvidia’s chips dominate the data center GPU market with over 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 AI chips from multiple suppliers. OpenAI also plans to work with Broadcom to design its own AI chips.
“I think AMD has done a really great job, as has Nvidia, and I think they both have their place,” Batta said.
At Oracle AI World on Tuesday, founder and chairman Larry Ellison will be on stage to share his thoughts on the latest OpenAI deals and what the company is doing to stay ahead of major cloud competitors. microsoft, Amazon and google.
“Oracle has already made a big bet and committed to being ready for the era of AI. The company must now prove that it can leverage the vast underlying data and enterprise capabilities beyond its own capacity to add meaningful value to the wave of enterprise AI,” Futurum Group CEO Daniel Newman said on the sidelines of the Oracle conference.
Daily stock price chart of Oracle and AMD.
