Oracle and Advanced Micro Devices are deepening their collaboration to meet growing global demand for artificial intelligence infrastructure.

According to the press release, Oracle will integrate AMD’s forthcoming MI450 chips into its cloud services, starting with 50,000 processors in the third quarter of 2026, with plans for further expansion in 2027 and beyond.

The partnership signals a major step in both firms’ efforts to strengthen their positions in the competitive AI market, where chip innovation and data processing capabilities have become essential for driving the next wave of enterprise and cloud computing growth.

This marks an important step for AMD as it seeks to compete more directly with Nvidia, whose integrated GPU-CPU racks currently dominate the AI computing market.

Oracle strengthens AI infrastructure with AMD partnership

The partnership gives Oracle a significant boost in diversifying its AI compute offerings.

By deploying AMD’s MI450 chips, Oracle aims to enhance the performance and scalability of its data centres amid surging enterprise interest in training and hosting AI models.

Businesses across sectors are racing to secure additional computing capacity as new, larger AI systems exceed current hardware limits.

For Oracle customers, this means the ability to run next-generation AI workloads, from trillion-parameter language models to multi-modal agentic systems, on infrastructure that is fast to deploy, easy to scale, and cost-efficient to operate, the company said in its statement.

AMD gains momentum with multiple AI partnerships

For AMD, the Oracle deal builds on a series of recent wins.

The chipmaker last week signed a multi-year agreement with OpenAI, which includes a supply arrangement for the AI chips and an option for OpenAI to acquire up to a 10% stake in AMD.

The companies have worked together to optimise chip architecture for AI workloads, including energy-intensive training and inference tasks.

OpenAI’s own plans involve building a one-gigawatt facility using AMD’s processors in 2026.

The project, one of the largest of its kind, highlights the growing role of chip partnerships in shaping the AI economy.

Cloud competition intensifies as AI demand accelerates

Oracle’s expanded deal with AMD also complements its existing work with OpenAI.

Reports suggest that OpenAI has agreed to purchase around $300 billion worth of cloud computing power from Oracle over five years, one of the biggest contracts in the history of the industry.

These moves underscore how cloud providers are adapting to an AI-driven market where performance, scale, and efficiency have become crucial competitive factors.

For Oracle, offering a wider range of chip architectures helps attract AI developers seeking flexible, cost-effective computing options.

For AMD, it means securing a major new customer base at a critical stage of its product rollout.

Market reaction reflects confidence in AMD

Following the announcement, AMD’s shares rose over 3% in premarket trading, even as broader markets declined amid renewed US-China trade tensions.

Oracle’s stock fell about 1%, reflecting cautious investor sentiment around tech infrastructure spending.

As AMD prepares to launch the MI450 chips and expand production capacity, both firms are positioning themselves to capture a larger share of the fast-growing AI compute market.

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