## Oracle Cloud to Deploy 50,000 AMD AI Chips, Intensifying Competition with Nvidia **News Provider:** CNBC **Authors:** Kif Leswing, Seema Mody **Published:** October 14, 2025 This news report details a significant strategic move by Oracle Cloud Infrastructure (OCI) to deploy 50,000 Advanced Micro Devices (AMD) graphics processors, signaling a growing challenge to Nvidia's dominance in the artificial intelligence (AI) chip market. ### Key Findings and Strategic Implications: * **Oracle's Commitment to AMD:** OCI announced its intention to deploy **50,000 AMD graphics processors**, with deployment scheduled to begin in the **second half of 2026**. This move underscores Oracle's strategy to offer customers alternatives to Nvidia's market-leading GPUs for AI workloads. * **AMD's Instinct MI450 Chips:** Oracle will utilize AMD's **Instinct MI450 chips**, which were announced earlier in the year. These are AMD's first AI chips designed for assembly into larger, rack-sized systems, enabling **72 chips to function as a single unit**. This capability is crucial for developing and deploying advanced AI algorithms. * **Market Reaction:** The announcement had a mixed impact on stock prices. **AMD shares inched higher**, while **Oracle shares sank 2%** and **Nvidia was more than 3% lower**. * **Oracle's Rationale:** Karan Batta, senior vice president of Oracle Cloud Infrastructure, expressed confidence in customer adoption of AMD, particularly for **"inferencing space"** (the process of using a trained AI model to make predictions). * **Broader AI Ecosystem:** The deployment is part of a larger trend where cloud providers are diversifying their AI chip suppliers. This is driven by the immense demand for computing power in the AI era. ### Significant Partnerships and Financial Data: * **OpenAI's Role:** * OpenAI CEO Sam Altman appeared with AMD CEO Lisa Su at a company event in June to announce the Instinct MI450 product. * Earlier in October, OpenAI announced a deal with AMD for processors requiring **6 gigawatts of power over multiple years**, with a **1-gigawatt rollout starting in 2026**. * As part of this deal, if successful, OpenAI could potentially own up to **160 million shares of AMD**, representing approximately **10% of the company**. * In September, OpenAI entered into a five-year cloud deal with Oracle, potentially worth up to **$300 billion**. * **Nvidia's Dominance and OpenAI's Shift:** * OpenAI has historically been closely linked with Nvidia, whose chips were instrumental in developing ChatGPT. * Nvidia currently holds a dominant position in the data center GPU market with **over 90% market share**. * Nvidia also invested in OpenAI in September. * However, OpenAI leaders emphasize the need for computing power from **multiple suppliers** to meet their growing demands. * **Future AI Chip Development:** OpenAI also has plans to design its own AI chips with **Broadcom**. ### Oracle's Strategic Positioning: * Oracle founder and Chairman Larry Ellison is expected to address the OpenAI deal and Oracle's strategy to compete with rivals like **Microsoft, Amazon, and Google** at Oracle AI World. * Daniel Newman, CEO of The Futurum Group, commented that Oracle is making "big bets" but needs to demonstrate how it can leverage its data and enterprise capabilities to add value to the enterprise AI wave, beyond just providing capacity. ### Context and Trends: * The news highlights a significant shift in the AI chip landscape, with AMD emerging as a more prominent alternative to Nvidia. * The massive power requirements (e.g., 6 gigawatts for OpenAI's AMD deal) underscore the scale of AI infrastructure development. * The diversification of chip suppliers by major AI players like OpenAI is a critical trend, driven by the need for scale, cost-effectiveness, and technological advancement. * Oracle's substantial investment in AMD processors, coupled with its massive cloud deal with OpenAI, positions it as a key player in the evolving AI cloud infrastructure market.
Oracle Cloud to deploy 50,000 AMD AI chips, signaling new Nvidia competition
Read original at CNBC →Oracle Cloud Infrastructure on Tuesday announced it will deploy 50,000 Advanced Micro Devices graphics processors starting in the second half of 2026.AMD shares inched higher. Oracle shares sank 2% while Nvidia was more than 3% lower.The move is the latest sign that cloud companies are increasingly offering AMD's graphics processing units as an alternative to Nvidia's market-leading GPUs for artificial intelligence."
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.Oracle will use AMD's Instinct MI450 chips, which were announced earlier this year.They are AMD's first AI chips that can be assembled into a larger rack-sized system that enables 72 of the chips to work as one, which is needed to create and deploy the most advanced AI algorithms.
OpenAI CEO Sam Altman appeared with AMD CEO Lisa Su at a company event in June to announce the product.Read more CNBC tech newsDutch government takes control of Chinese-owned chipmaker Nexperia in 'highly exceptional' moveXiaomi shares see biggest drop since April after fatal EV crash sparks safety concernsNavan sets price range for IPO, expects market cap of up to $6.
5 billionWe tested OpenAI's Sora 2 video generator to find out why Hollywood is freaking outEarlier this month, OpenAI announced a deal with AMD for processors requiring 6 gigawatts of power over multiple years, with a 1-gigawatt rollout starting in 2026. As part of the deal, and if the deployment goes well, OpenAI may end up owning as many as 160 million shares of AMD, or about 10% of the company.
In September, OpenAI entered into a five-year cloud deal with Oracle that could be worth as much as $300 billion.OpenAI has historically been closely linked with Nvidia, whose chips were used to develop ChatGPT. Nvidia's chips dominate the market for data center GPUs with more than 90% market share.
Nvidia also invested in OpenAI in September.But OpenAI leaders say the company needs as much computing power as possible, which means it needs AI chips from multiple suppliers. OpenAI also has plans to design its own AI chips with Broadcom."I think AMD has done a really fantastic job, just like Nvidia, and I think both of them have their place," Batta said.
Tuesday at Oracle AI World, founder and Chairman Larry Ellison is set to take the stage and share his views on the latest OpenAI deal and what his company is doing to stay ahead of its main cloud competitors – Microsoft, Amazon and Google. "Oracle has already shown it is willing to place big bets and go all in to meet the AI moment.
The company must now prove that beyond capacity, it can capitalize on its massive underlying data and enterprise capabilities … to add meaningful value to the enterprise AI wave," said Daniel Newman, CEO of The Futurum Group, on the sidelines of Oracle's conference.Stock chart iconOracle and AMD one-day stock chart.
