AMD Secures Major AI Chip Deal with Oracle

Advanced Micro Devices (AMD) has announced a significant agreement with Oracle to supply graphics processing units (GPUs) for Oracle's artificial intelligence (AI) supercluster. This marks AMD's second major AI chip sale in as many weeks.

Oracle Cloud Infrastructure plans to deploy an initial 50,000 AMD Instinct GPUs in the third quarter of 2026, with further expansions anticipated in 2027 and beyond. The initial deployment will utilize AMD's Instinct MI450 Series GPUs. This collaboration continues the longstanding partnership between AMD and Oracle, which began with Oracle's use of AMD Instinct MI300X processors in 2024 and extends to the current use of AMD Instinct MI355X GPUs.

"With our AMD Instinct GPUs, Epyc CPUs, and advanced AMD Pensando networking, Oracle customers gain powerful new capabilities for training, fine-tuning, and deploying the next generation of AI," said Forrest Norrod, executive vice president and general manager for AMD's Data Center Solutions Business Group.

This announcement follows AMD's recent contract to supply OpenAI with 6 gigawatts of AMD GPUs over a multiyear period, starting with 1 gigawatt of AMD Instinct MI450 Series GPUs in the second half of 2026.

In response to the news, AMD's stock experienced a slight increase, trading at $218.43 in the morning session.