Oracle Expands AI Infrastructure With AMD GPUs

Oracle Cloud Infrastructure (NYSE: ORCL) announced plans to deploy 50,000 AMD (NASDAQ: AMD) Instinct MI450 GPUs beginning in the second half of 2026, marking a major expansion of its AI compute capacity and a direct challenge to Nvidia’s (NASDAQ: NVDA) dominance in data center GPUs.

AMD shares rose 3% premarket, while Oracle shares edged slightly lower following the announcement.

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

Strategic Context and Industry Impact

The MI450 marks AMD’s first AI chip that can be clustered into rack-sized systems, enabling 72 chips to function as one, a key requirement for training and deploying large AI models.

The collaboration strengthens AMD’s foothold in the AI cloud ecosystem, where Nvidia currently holds over 90% market share. With hyperscalers diversifying GPU suppliers, AMD’s MI450 rollout offers an alternative for AI workloads — especially in inference and enterprise-grade compute.

Oracle’s bet on AMD follows OpenAI’s recent deal to procure 6 GW of AMD processors across multiple years, starting with 1 GW in 2026. As part of that agreement, OpenAI could receive up to 160 million AMD shares (~10% stake) if deployment milestones are met.

Oracle’s Broader AI Ambitions

Oracle is positioning itself as a key AI cloud infrastructure provider alongside Microsoft (MSFT), Amazon (AMZN), and Google (GOOGL). The company signed a five-year, $300 billion AI cloud agreement with OpenAI in September — one of the largest enterprise AI deals in history.

Founder and Chairman Larry Ellison is set to speak at Oracle AI World, where he will outline Oracle’s approach to integrating AI infrastructure with enterprise data systems to deliver “meaningful business value.”

“Oracle has already shown it’s willing to place big bets to meet the AI moment. The company must now prove it can capitalize on its massive enterprise data capabilities to add real value,” said Daniel Newman, CEO of The Futurum Group.