AMD gets another vote of confidence in the AI chip wars — this time from Oracle

In a significant move within the AI chip market, AMD has announced a new collaboration with Oracle, which will see the deployment of 50,000 of its advanced AI chips in Oracle's data centers starting in the latter half of 2026. Although the financial details of this agreement have not been disclosed, the partnership marks another step for AMD in its ongoing competition with rival Nvidia, a dominant player in the sector. This announcement comes just over a week after AMD inked a multi-billion-dollar deal to supply chips to OpenAI, further solidifying its position in the AI landscape. The partnership with Oracle will utilize AMD's Instinct MI450 graphics processing units (GPUs), the same technology set to be employed by OpenAI for training and inference tasks in AI models. Karan Batta, Oracle's Senior Vice President of Cloud Infrastructure, expressed optimism regarding customer adoption of AMD's chips, particularly in the inferencing domain. He shared his thoughts with CNBC, stating, "We feel like customers are going to take up AMD very, very well — especially in the inferencing space." Following the announcement, AMD's stock experienced a modest increase of around 2% in premarket trading, a contrast to the 27% surge seen after the OpenAI partnership. Meanwhile, Oracle's shares dipped by approximately 1.5%. This collaboration is the latest in a series of AI infrastructure agreements among tech giants, with Broadcom and OpenAI recently confirming a deal for 10 gigawatts of custom AI accelerators. Additionally, Nvidia has granted OpenAI access to 10 gigawatts of GPUs, alongside a substantial $100 billion investment. In July, OpenAI and Oracle also partnered to develop up to 4.5 gigawatts of AI compute capacity, a deal valued at over $300 billion over five years. As these partnerships evolve, the competitive landscape in the AI chip market continues to intensify.