Oracle Cloud to deploy 50,000 AMD AI chips as alternative to Nvidia

Seer On Tuesday Cloud Infrastructure announced it would distribute 50,000 Advanced Micro Devices GPUs will launch in the second half of 2026.

The move is the latest sign that cloud companies are increasingly offering AMD’s GPUs as an alternative. Nvidia’s Market leading GPUs for AI.

“We think customers will do very, very well with AMD, especially in the inference space,” Karan Batta, senior vice president of Oracle Cloud Infrastructure, told CNBC’s Seema Mody.

Oracle will use AMD’s Instinct MI450 chips, which were announced earlier this year.

These are AMD’s first AI chips that can be assembled into a larger rack-size system that allows 72 chips to work as a single piece, which is essential for building and deploying the most advanced AI algorithms.

OpenAI CEO Sam Altman attended a company event with AMD CEO Lisa Su in June to announce the product.

“I think AMD has done a great job, as has Nvidia, and I think they both have their place,” Batta said.

He added that AMD’s software stack is “critical” and that “customers will get a very, very good handle on AMD in the inference space.”

Earlier this month, OpenAI announced a deal with AMD for processors requiring six gigawatts of power over several years, with 1 gigawatt available in 2026. As part of the deal, and if the distribution goes well, OpenAI could own 160 million shares of AMD, or about 10% of the company.

In September, OpenAI signed a five-year cloud deal with Oracle that could be worth as much as $300 billion.

OpenAI has historically been closely tied to Nvidia, whose chips were used to develop ChatGPT. Nvidia’s chips dominate the data center GPU market with over 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 together with Broadcom.

On Tuesday at Oracle AI World, founder and president Larry Ellison will take the stage and share his thoughts on the latest OpenAI deal and what his company is doing to stay ahead of its major cloud rivals: Microsoft, Amazon And Google.

“Oracle has already shown that it is willing to bet big and go all-out to meet the AI ​​moment. The company now needs to prove that it can leverage its massive underlying data and enterprise capabilities, beyond capacity, to add meaningful value to the enterprise AI wave,” said Daniel Newman, CEO of The Futurum Group, on the sidelines of the Oracle conference.