Oracle Cloud will deploy 50,000 AMD AI chips as a replacement for Nvidia

oracle The Cloud Infrastructure company announced Tuesday that it will deploy 50,000 Advanced micro devices Graphics processors start in the second half of 2026.

AMD shares rose. Oracle shares fell 2% while Nvidia shares fell more than 3%.

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

“We feel customers will engage with AMD very well – especially in the inference space,” said Karan Bhatta, senior vice president, Oracle Cloud Infrastructure.

Oracle will use AMD’s Instinct MI450 chipset, which has been announced Earlier this year.

It is AMD’s first AI chipset that can be assembled into a larger rack-sized system that enables 72 chips to work as a single chip, which is essential for creating and deploying the most advanced AI algorithms.

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

Earlier this month, OpenAI announced… deal With AMD for processors requiring 6 gigawatts of power over several years, with 1 gigawatt starting to roll out in 2026. As part of the deal, if the rollout goes well, OpenAI could end up owning up to 160 million AMD shares, or about 10% of the company.

In September, OpenAI entered into a five-year cloud deal with Oracle With a value of up to 300 billion dollars.

OpenAI has historically been closely associated with Nvidia, whose chips were used to develop ChatGPT. Nvidia chips dominate the market for graphics processing units in data centers More than 90% of the market share. Nvidia too invested At 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 for this Designing its own AI chips with Broadcom.

“I think AMD has done a really great job, just like Nvidia, and I think they both have their place,” Bata said.

Tuesday at Oracle AI World, founder and CEO Larry Ellison He is set to take the stage and share his views on the latest OpenAI deal and what his company is doing to stay ahead of its major cloud competitors – Microsoft, Amazon and Google.

“Oracle has already shown that it is willing to make big bets and go all out to meet the AI ​​moment,” said Daniel Newman, CEO of Futurum Group, on the sidelines of the Oracle conference. “The company must now prove that beyond capabilities, it can leverage its vast core data and enterprise capabilities… to add meaningful value to the AI ​​wave.” For institutions.