Cloud giant Oracle announced on Tuesday, October 14, that it will deploy 50,000 graphics processing units from Advanced Micro Devices (AMD) in the second half of 2026. And the collaboration will expand further from 2027.

Details

We're talking about AMD Instinct MI450 chips, introduced earlier this year. These are the company's first AI processors that can be combined into large racks, where 72 chips work as a single system. Such an architecture is essential for creating and deploying advanced artificial intelligence algorithms, CNBC explains .

AMD shares were gaining 2.6% at the moment in trading on October 14, and since the beginning of 2025 they have already risen in price by almost 82%. Oracle shares, on the contrary, collapsed by 5% on Tuesday, but they are up 77% since the beginning of 2025.

What does that mean?

Oracle's announcement was new evidence that cloud providers are increasingly offering AMD GPUs as an alternative to Nvidia's solutions, which dominate the AI market, CNBC writes. It also reflects the rapid growth in the number of computing infrastructure projects by large technology and AI companies trying to keep up with the skyrocketing demand for AI services, Bloomberg notes.

AMD offers so-called AI gas pedals based on graphics processors, as well as universal processors and networking microchips. The company seeks to increase its competitiveness and approach the level of Nvidia, offering data center owners complete server solutions, the agency writes.

At the same time, Nvidia chips occupy more than 90% of the market of graphics processors for data centers, CNBC notes. In the second quarter, according to the research company IDC, cited by Bloomberg, AMD delivered about 100,000 processors for artificial intelligence, while Nvidia - 1.5 million.

Context

Oracle's announcement follows another major AMD deal. In early October, OpenAI, which developed the ChatGPT chatbot, announced an agreement with the chipmaker to supply processors with a combined capacity of six gigawatts over several years. As part of the deal, OpenAI will be able to receive up to 160 million shares of AMD stock, which is roughly 10% of the company.

In September, OpenAI also entered into a five-year cloud agreement with Oracle, with a potential value of up to $300 billion.

OpenAI is also working closely with Nvidia. In September, the parties announced that Nvidia would invest up to $100 billion in OpenAI to deploy at least 10 gigawatts of the chipmaker's computing power for OpenAI's next generation of AI models. This caused concern among Wall Street analysts: they saw the deal as a sign of a possible bubble and a bad sign for Nvidia, since it would essentially give OpenAI money that it would spend on buying hardware from Nvidia itself.

This article was AI-translated and verified by a human editor

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