Topline
Oracle’s cloud business announced Tuesday it would deploy tens of thousands of AMD’s newest artificial intelligence chips, expanding a years-long partnership between the two companies as demand for AI infrastructure grows, further deepening competition with Nvidia.
AMD reached a multibillion-dollar deal earlier this month with OpenAI, matching a growing demand for AI infrastructure.
NurPhoto via Getty Images
Key Facts
Oracle Cloud Infrastructure will deploy AMD’s Instinct MI450 chips—the chipmaker’s next-generation AI chips announced earlier this year—starting in the third quarter of 2026, with plans to expand the partnership in 2027 and beyond, the companies said in a statement.
Neither Oracle nor AMD disclosed the financial terms of the deal.
A partnership was reached as next-generation AI models are expected to outpace the limits of current AI infrastructure, the firms said.
Shares of AMD rose 2.2% in premarket trading following the announcement, while Oracle’s shares decreased 1.4%.
What Do We Know About Amd’s Deal With Openai?
AMD’s expanded partnership with Oracle follows a multibillion-dollar deal announced last week between the chipmaker and OpenAI. As part of the deal, OpenAI will acquire and deploy 6 gigawatts of AMD’s AI chips, starting with a 1-gigawatt deployment in 2026, and AMD will issue OpenAI a warrant for up to 160 million shares. That represents an estimated 10% stake in AMD at $0.01 per share, which will be vested once specific share-price milestones are met. Neither company disclosed the exact value of the deal, though AMD—whose shares surged more than 30% on the news—suggested the partnership would deliver tens of billions of dollars in revenue.
Key Background
A spending spree has emerged in recent months as demand for AI infrastructure has soared. Oracle’s latest deal with AMD follows a partnership reached with OpenAI last month, in which OpenAI said it would purchase $300 billion in computing power over roughly five years starting in 2027. That deal came as Nvidia—AMD’s chief rival—announced plans to invest $100 billion in OpenAI, allowing the AI giant to deploy at least 10 gigawatts of Nvidia systems for its AI data centers. The first of the deployments is expected in late 2025, though the deal has not been finalized. Nvidia earlier announced plans to collaborate with Intel on new data center and consumer chips, combining Intel’s CPU and Nvidia’s GPU, in a deal that secures about $5 billion worth of Intel’s stock for Nvidia.