Oracle’s (NYSE:ORCL) Cloud Infrastructure announced on Tuesday that it will deploy 50,000 Advanced Micro Devices (NASDAQ:AMD) graphics processors starting in the second half of 2026, marking a significant shift away from the Nvidia (NASDAQ:NVDA) GPUs that dominate the market.
AMD shares climbed 1.9% in pre-market trading, while Oracle’s stock ticked slightly lower. Nvidia’s shares were down 1.5%.
Competition For Nvidia
Oracle Cloud Infrastructure will deploy 50,000 of AMD's Instinct MI450 chips, introduced earlier this year. These are AMD's first AI processors designed to be combined into a rack-sized system, enabling 72 chips to operate as a single unit — a key capability for building and running advanced AI models.
The companies did not disclose the financial terms of the deal.
“We feel like customers are going to take up AMD very, very well — especially in the inferencing space,” said Karan Batta, senior vice president of Oracle Cloud Infrastructure. AMD’s software stack was also highlighted as “critical” by Batta.
The decision to shift to AMD’s GPUs is indicative of a broader trend in the cloud industry, where companies are increasingly considering AMD as a viable alternative to Nvidia’s GPUs for AI.
Jensen Huang On AMD-Open AI Deal
The move comes just a week after AMD and OpenAI announced a deal. OpenAI will purchase up to six gigawatts of AMD’s next-generation Instinct MI450X GPUs over the next five years — a contract analysts estimate could generate over $100 billion in revenue. This deal was described as a “bet-the-farm” moment for AMD CEO Lisa Su.
Nvidia’s CEO, Jensen Huang, expressed his surprise at AMD’s decision to grant OpenAI warrants for up to 160 million AMD shares, worth nearly 10% of the company, in exchange for a massive GPU purchase commitment. This was described as “imaginative” but “surprising” by Huang.
The current AI boom has been described as a potential “high-tech house of cards” and an “excuse to eliminate millions of American jobs” by Gordon Johnson, CEO and Founder of GLJ Research, LLC.
Benzinga's Edge Rankings place AMD in the 84th percentile for quality and the 94th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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