Oracle to Deploy 50,000 AMD MI450 AI Chips Starting 2026
Advanced Micro Devices (AMD) has secured a major commitment from Oracle, which will deploy 50,000 of AMD’s forthcoming MI450 AI accelerators in its data centers beginning Q3 2026. This substantial order represents a significant endorsement of AMD’s technology as it challenges Nvidia’s dominance in the AI processor market.
Key Takeaways
- Oracle will install 50,000 AMD MI450 AI chips starting Q3 2026
- Systems will include AMD processors and networking components
- Deployment expected to expand through 2027 and beyond
- AMD shares rose 1.4% following the announcement
Tech Giants Race to Expand AI Infrastructure
The Oracle-AMD partnership reflects the intense competition among technology companies to build sufficient computing infrastructure for skyrocketing AI service demand. This announcement follows a frenzy of commitments by major tech firms to expand their AI capabilities.
AMD, based in Santa Clara, California, is positioning itself as a credible alternative to Nvidia, the current dominant provider of AI processors. Following the announcement, AMD shares rose 1.4% while Oracle’s stock declined 4.1%.
AMD’s Competitive Position
Similar to its larger rival, AMD offers AI accelerators based on graphics processing units, along with general-purpose processors and networking chips. The company is now working to match Nvidia’s capability to provide data center owners with complete computing systems.
Market data reveals the scale of competition: AMD shipped approximately 100,000 AI processors in the second quarter, while Nvidia delivered 1.5 million units during the same period.
Expanding Partnerships
The Oracle agreement follows AMD’s recent partnership with OpenAI, where the AI startup committed to purchasing computers featuring AMD accelerators representing 6 gigawatts of capacity over multiple years. Separately, OpenAI also announced a deal with Broadcom Inc. on Monday to add 10 gigawatts of capacity.
Neither Oracle nor AMD disclosed what percentage of AMD’s total supply the 50,000 chips represent, nor did they specify a completion timeline for the installation.
