**Oracle to Deploy 50,000 AI Chips from AMD**
*By Dwaipayan Roy | Oct 14, 2025, 08:00 PM*
Oracle Cloud Infrastructure has announced an ambitious plan to deploy 50,000 advanced graphics processors from Advanced Micro Devices (AMD), with the rollout scheduled to begin in the second half of 2026. This strategic move highlights a significant shift in the cloud computing landscape, as companies increasingly consider AMD’s GPUs as a strong alternative to NVIDIA’s dominant offerings for artificial intelligence (AI) workloads.
**A Market Shift Towards AMD**
Karan Batta, Senior Vice President of Oracle Cloud Infrastructure, expressed strong confidence in AMD’s technology. He stated, “We feel like customers are going to take up AMD very, very well especially in the inferencing space.” This endorsement signals growing industry acceptance of AMD’s AI solutions and suggests a competitive diversification beyond NVIDIA’s longstanding AI chip dominance.
**Introducing AMD’s Instinct MI450 AI Chips**
Oracle’s deployment will leverage AMD’s latest Instinct MI450 AI chips, unveiled earlier this year. These chips are the first from AMD designed to be combined into larger rack-sized systems, allowing up to 72 units to work together seamlessly. This scalability enables the development and execution of advanced AI algorithms at unprecedented levels of performance and efficiency.
**Strategic Partnerships Strengthen AMD’s Position**
Earlier this month, OpenAI revealed a multi-year partnership with AMD, committing to processors requiring 6 gigawatts (GW) of power. The initial 1 GW of capacity is expected to be deployed in 2026. Successful collaboration could see OpenAI owning up to 10% of AMD.
In addition, OpenAI signed a five-year cloud services deal with Oracle in September, valued at up to $300 billion. These agreements underscore growing collaboration among leading AI developers and cloud providers, with AMD playing an increasingly central role.
**Diversifying AI Chip Sources**
Despite OpenAI’s historical reliance on NVIDIA chips—used in building ChatGPT—the organization is actively pursuing computing power from multiple suppliers. Beyond partnerships with AMD, OpenAI is also planning to design its own AI chips in collaboration with Broadcom, reflecting a broader trend toward chip diversity in the AI ecosystem.
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Oracle’s commitment to deploying AMD’s advanced AI chips reflects a pivotal moment in the cloud industry’s evolving hardware preferences, offering customers more options and potentially reshaping the future of AI computing infrastructure.
https://www.newsbytesapp.com/news/science/oracle-to-deploy-amd-chips-for-ai-in-data-centers/story
