Oracle Joins Forces with AMD to Shake Up Nvidia’s AI Reign with 50,000 New Chips

 

Oracle Bets Big on AMD: 50,000 AI Chips Coming in 2026

In a major shake-up in the AI hardware landscape, Oracle Cloud Infrastructure (OCI) has announced plans to deploy 50,000 AMD Instinct MI450 GPUs starting in the second half of 2026.

The move marks a significant step toward diversifying AI chip suppliers, signaling  stronger competition for Nvidia, whose GPUs currently dominate the data center market with over 90% share.

“We feel like customers are going to take up AMD very, very well — especially in the inferencing space,” said Karan Batta, Senior Vice President at Oracle Cloud Infrastructure.

Following the announcement, AMD shares surged 9%, while Oracle dipped 3% and Nvidia fell more than 4%, reflecting investors’ shifting expectations in the rapidly evolving AI chip race.

---

AMD’s Instinct MI450 Chips: Designed for the Next Wave of AI Computing

Oracle’s new deployment will rely on AMD’s Instinct MI450 — the company’s most advanced AI chip yet.
The MI450 can be scaled into rack-sized clusters of 72 interconnected GPUs, enabling the development and deployment of complex, large-scale AI models.

This marks AMD’s strongest challenge to Nvidia’s H100 and H200 chips, which have become the backbone of AI systems powering technologies like ChatGPT.

OpenAI CEO Sam Altman and AMD CEO Lisa Su previously shared the stage in June to unveil the new hardware, signaling deeper collaboration between OpenAI, AMD, and Oracle.

---

The Bigger Picture: Oracle, OpenAI, and the $300 Billion Cloud Race

Oracle has been making aggressive moves to expand its footprint in the AI infrastructure market.
In September, the company signed a five-year cloud deal with OpenAI reportedly worth up to $300 billion, underscoring Oracle’s growing importance in powering next-generation AI systems.

Earlier this month, OpenAI also revealed a massive partnership with AMD, which includes access to chips requiring 6 gigawatts of power over several years.
If the deployment succeeds, OpenAI could acquire up to 160 million shares of AMD, roughly 10% of the company — a potential multi-billion-dollar relationship.

While Nvidia remains OpenAI’s primary chip provider, Altman has emphasized the need for “as much computing power as possible,” which means working with multiple suppliers — and even developing custom AI chips with Broadcom in the future.

At Oracle AI World 2025, company founder Larry Ellison is expected to highlight Oracle’s strategy to outpace cloud giants Microsoft, Amazon, and Google by blending its powerful enterprise data systems with cutting-edge AI infrastructure.

Industry analyst Daniel Newman, CEO of The Futurum Group, commented:

“Oracle has already shown it’s willing to go all in on AI. The challenge now is proving that it can turn its massive data capabilities into meaningful value for enterprises.”

---

🔍 The Bottom Line

Oracle’s decision to deploy 50,000 AMD AI chips is more than a hardware upgrade — it’s a strategic statement in the battle for AI infrastructure dominance.

By betting on AMD and deepening its partnership with OpenAI, Oracle is positioning itself as a serious rival to Microsoft Azure, Amazon Web Services, and Google Cloud — and potentially reshaping the balance of power in the trillion-dollar AI cloud market.