What to know

  • Oracle will install 50,000 of AMD’s Instinct MI450 AI chips in its cloud infrastructure, starting in the third quarter of 2026.
  • This marks the biggest deployment of AMD GPUs by any hyperscaler, signaling growing competition against Nvidia’s dominance in AI processing.
  • Oracle partnered with AMD for an AI supercluster, focusing on maximizing scale, energy efficiency, and open-source software compatibility.
  • The move reflects rising demand for diversified GPU supply as AI workloads surge across enterprise applications.

Oracle’s announcement sets a new benchmark for cloud and AI infrastructure. Scheduled for rollout in late 2026, Oracle will incorporate AMD’s latest Instinct MI450 GPUs in a major supercluster, making it the first major public AI deployment exclusively built on AMD hardware. Oracle’s investment follows similar commitments by OpenAI and other AI leaders, signaling a trend toward broadening chip supply chains and reducing dependency on Nvidia, which currently powers over 90 percent of large-scale AI GPUs for cloud workloads.​

The AMD MI450 chips deliver up to 432 GB HBM4 memory and 20 TB/s bandwidth per GPU, positioning them as direct competitors to Nvidia’s H100 and H200. Oracle’s supercluster will use AMD’s Helios rack architecture, next-generation EPYC CPUs, and Pensando networking, aiming for extreme scalability and energy efficiency. The ROCm open-source software stack from AMD will enable developers to build AI applications without relying on Nvidia’s proprietary CUDA ecosystem.​

Source: AMD Official

Industry analysts view Oracle’s move as a challenge to Nvidia’s market dominance and a sign of accelerating innovation in AI compute hardware. Despite the broader market fluctuations, AMD’s chip announcement has driven a noticeable uptick in its stock performance, while Nvidia’s shares saw a decline. As AI model training and inferencing tasks grow in scale and complexity, cloud providers are racing to diversify partnerships and offer more open, flexible infrastructure options to customers.​

For enterprises and researchers, Oracle’s AMD-powered infrastructure promises improved performance for large models, cost-efficient scaling, and reduced reliance on a single vendor. This ecosystem evolution is expected to drive competitive pricing, hardware innovation, and new opportunities to optimize workloads for cutting-edge AI applications.