AMD has signed an agreement with Oracle to supply 50,000 AI chips

AMD, which competes with Nvidia in the artificial intelligence market, has announced an agreement with Oracle to deploy 50,000 of its latest MI450 AI chips in its data centers, starting in the third quarter of 2026. The rollout is planned for 2027 and beyond, with all systems to be based entirely on AMD components, including central processing units. This agreement once again underscores AMD's growing competitiveness in the technology industry.

Source Ministry of Finance

This agreement gives AMD the opportunity to strengthen its position as an alternative to Nvidia, which dominates the AI processor market, although AMD still lags significantly in market share: about 100,000 shipments in the second quarter compared to 1.5 million for Nvidia. AMD's strategy is to move from selling individual chips to offering integrated systems for data centers, while AMD's shares rose 1.4% and Oracle's share price fell 4.1%.

This deal with Oracle follows a string of successful contracts for AMD to supply computing power, notably with OpenAI, where the company has entered into a long-term partnership to supply 6 gigawatts of power. This demonstrates the stability and growing interest in AMD's solutions amid significant demand for artificial intelligence services.