Prime Highlight:
- Oracle Cloud Infrastructure (OCI) will deploy 50,000 AMD Instinct MI450 GPUs starting in the second half of 2026 to expand its AI computing capabilities.
- The initiative supports Oracle’s broader strategy to rival major cloud providers like Microsoft, Amazon, and Google in the growing AI infrastructure market.
Key Facts:
- Each rack of AMD’s Instinct MI450 system can hold 72 chips, designed for large-scale AI applications such as inferencing and model training.
- OpenAI recently signed a five-year cloud contract with Oracle worth up to $300 billion and a multi-year deal with AMD requiring six gigawatts of power for AI operations.
Background
Oracle Cloud Infrastructure (OCI) announced that it will start deploying 50,000 Advanced Micro Devices (AMD) graphics processors in the second half of 2026. The project emphasizes the increasing use of AMD GPUs as a substitute for Nvidia’s dominating chips in artificial intelligence applications.
OCI will use AMD’s Instinct MI450 processors, the company’s first AI chips designed to be assembled into rack-sized systems. Each rack can hold 72 chips, enabling the deployment of advanced AI algorithms. Oracle’s senior vice president, Karan Batta, said the company expects strong adoption, particularly in AI inferencing applications.
The announcement comes as OpenAI expands its AI computing capacity. Earlier this month, OpenAI entered into a five-year cloud contract with Oracle, estimable at up to $300 billion, as well as an agreement with AMD in a multi-year deal that necessitates six gigawatts of power, with a rollout of 1 gigawatt in 2026. If successful, OpenAI may acquire up to 160 million shares of AMD, or roughly 10% of the company.
OpenAI has traditionally relied on Nvidia chips, which hold over 90% of the data center GPU market, but company leaders say diversifying suppliers is critical to meet growing computing demands. OpenAI also plans to design its own AI chips with Broadcom.
Industry analysts see Oracle’s move as part of its broader strategy to compete with Microsoft, Amazon, and Google in the cloud AI space. Daniel Newman, CEO of The Futurum Group, said Oracle must leverage its enterprise data and capabilities to provide meaningful value in the AI wave.
