AMD gets another vote of confidence in the AI chip wars

AMD CEO Lisa Su.

I-HWA CHENG/AFP via Getty Images

AMD is set to deploy 50,000 AI chips in Oracle data centers in the second half of 2026.
It follows AMD’s recent mega chip deal with OpenAI, with both partnerships a boost against rival Nvidia.
The Oracle-AMD deal is the latest AI infrastructure partnership among tech giants.

The AI chip deals keep on coming, and this time it’s between AMD and Oracle.

The companies said Tuesday that AMD plans to deploy 50,000 of its most advanced AI chips inside data centers run by Oracle, starting in the second half of 2026.

Oracle and AMD did not disclose the financial terms of the deal in Tuesday’s announcement. Neither immediately responded to a request for comment from Business Insider.

It comes eight days after AMD agreed to a multi-billion-dollar partnership to supply its chips to OpenAI. Both deals boost AMD against rival chipmaker Nvidia, which has held a dominant position in the market.

Oracle is set to use AMD’s Instinct MI450 graphics processing units, or GPUs, the same chips set to be deployed by OpenAI. They can be used for training AI models and for inference: when models apply their knowledge to tasks.

“We feel like customers are going to take up AMD very, very well — especially in the inferencing space,” Karan Batta, senior vice president of Oracle Cloud Infrastructure, told CNBC on Tuesday.

AMD shares opened about 2.5% on Monday’s close — far lower than the 27% surge after last week’s deal with OpenAI. Oracle’s shares opened up 2.2% but quickly lost their gains and were down as much as 5% in morning trading.

The Oracle-AMD partnership is the latest AI infrastructure deal announced by tech giants in recent months.

On Monday, Broadcom and OpenAI confirmed a deal for 10 gigawatts of custom AI accelerators.

Last month, Nvidia announced that OpenAI will gain access to 10 gigawatts of GPUs, alongside a $100 billion investment from the chipmaker.

In July, OpenAI entered a partnership with Oracle to develop up to 4.5 gigawatts of AI compute capacity in a deal worth more than $300 billion over five years.

Read the original article on Business Insider

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