AMD says Oracle is pledging widespread use of new AI chips

Advanced Micro Devices (AMD), a key player in the AI processing market, has announced that Oracle Corporation will utilize a significant number of its upcoming MI450 chips beginning in 2026. In a recent statement, AMD revealed that Oracle plans to incorporate 50,000 of these advanced semiconductors into its data center computers, starting in the third quarter of that year. This development marks another step in the ongoing competition among tech giants to enhance their computing capabilities in response to soaring demand for AI services. Oracle's commitment not only highlights the potential of AMD's technology but also positions AMD as a viable alternative to Nvidia, the current leader in AI processors. In the early trading hours in New York, AMD's stock saw a modest increase of 1.4%, whereas Oracle's shares dipped by 4.1%. Both companies are looking to improve their offerings, with AMD striving to match Nvidia's comprehensive solutions for data center providers, including AI accelerators and general-purpose processors. During the second quarter, AMD shipped approximately 100,000 AI processors, a stark contrast to Nvidia’s impressive figure of 1.5 million units. While specific timelines for the installation of the new chips remain unclear, both AMD and Oracle anticipate further expansion of this collaboration into 2027 and beyond. Additionally, this announcement follows AMD's partnership with OpenAI, which includes a deal for OpenAI to acquire 6 gigawatts of computing power equipped with AMD accelerators over several years. OpenAI has also recently entered into a capacity agreement with Broadcom Inc. for an additional 10 gigawatts, showcasing the growing demand for advanced computing solutions in the AI landscape.