AMD, Nvidia’s main rival in artificial intelligence (AI) processors, announced that Oracle will deploy a large batch of its future MI450 chips next year.
Oracle will place 50,000 of these semiconductors in data center computers starting in the third quarter of 2026, according to a statement released this Tuesday (14). The systems will have AMD processors and networking components.
The announcement is the latest in a series of commitments from major technology and AI companies to expand computing infrastructure. All are racing to meet demand for AI services, which they say is growing rapidly.
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It’s also another endorsement of AMD’s technology. The company, based in Santa Clara, California, is working to become a credible alternative to Nvidia, which dominates the AI processor market. The chipmaker’s shares were up 1.4% at 9:46 a.m. in New York, while Oracle’s shares were down 4.1%.
Like its much larger rival, AMD offers so-called AI accelerators — based on graphics processing units (GPUs) — in addition to general-purpose processors and some networking chips. Now, the company is trying to go even further and match Nvidia’s ability to provide complete computers for data center owners.
In the second quarter, AMD shipped about 100,000 AI processors, according to research firm IDC. Nvidia delivered 1.5 million in the same period.
Oracle and AMD have not specified when they expect to complete the installation, but see the expansion in 2027 “and beyond.” The companies also did not say what portion of AMD’s total supply will be allocated to Oracle.
Oracle’s announcement follows AMD’s agreement with OpenAI, an AI startup that has inked computing contracts with several chipmakers. In this long-term agreement, OpenAI must purchase computers with AMD accelerators equivalent to 6 gigawatts over several years.
On Monday, OpenAI also announced a deal with chipmaker Broadcom Inc. that is expected to add 10 gigawatts of capacity.
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