LAS VEGAS – Oracle Cloud Infrastructure on Tuesday said it plans to deploy 50,000 Advanced Micro Devices graphics processors for artificial intelligence (AI) workloads, marking a significant expansion of alternatives to NVIDIA Corp.’s dominant position in the AI chip market.
The cloud computing giant will become the first hyperscaler to offer a publicly available AI supercluster powered by 50,000 AMD Instinct MI450 Series GPUs, with deployment beginning in the third quarter of 2026, according to Oracle.
The announcement was made as Oracle hosts its AI World event in Las Vegas, where the company is showcasing its latest AI technology innovations.
The move comes as cloud providers increasingly diversify their chip suppliers amid surging demand for AI computing power. The announcement follows OpenAI’s recent decision to incorporate AMD chips into its data centers.
Oracle will begin offering cloud services using the new AMD processors in the second half of next year, with plans to expand the rollout through 2027 and beyond as artificial intelligence usage continues to drive demand for computational resources.
“We feel like customers are going to take up AMD very, very well — especially in the inferencing space,” Karan Batta, senior vice president of Oracle Cloud Infrastructure, told CNBC. He emphasized both AMD and NVIDIA have earned their place in the market. “I think AMD has done a really fantastic job, just like NVIDIA, and I think both of them have their place,” Batta said.
The AMD Instinct MI450 chips, unveiled in June at a company event featuring OpenAI CEO Sam Altman and AMD CEO Lisa Su, represent AMD’s first AI accelerators designed to scale into rack-sized systems. The architecture allows up to 72 chips to operate as a single unit, a configuration critical for deploying advanced AI algorithms.
The partnership builds on Oracle and AMD’s existing collaboration, which began with the launch of AMD Instinct MI300X services in 2024 and continued with the general availability of OCI Compute using AMD Instinct MI355X GPUs.
Steven Dickens, CEO of HyperFrame Research, said the deal is good for a market that “needs three to four strong providers.”
“It’s not healthy for the industry as a whole for one provider (NVIDIA) to have more than 90% market share. In a perverse way it is also good for NVIDIA as competition will drive them to keep innovating,” Dickens said. “For Oracle, this makes a lot of sense. It has huge performance obligations and backlog for AI compute, and this announcement better positions them to service that backlog.”
