Oracle and Advanced Micro Devices (AMD) are expanding their partnership focusing on artificial intelligence (AI) with plans to deploy 50,000 AMD graphics processing units (GPUs) starting in the third quarter of 2026, with additional expansions to follow.
The initiative centers around building an AI “supercluster,” a massive network of high-performance computers interconnected to operate as a single, powerful system designed for next-generation AI models.
State of play: Both companies recognize that emerging AI applications are rapidly outgrowing current infrastructure capabilities, necessitating large-scale, cutting-edge hardware investments.
- Following the announcement, AMD’s shares rose by 1.4% while Oracle’s shares saw a decline of 2.9% in early Tuesday trading.
Zoom out: The AMD-Oracle deal is part of a broader wave of partnerships and investments in the AI sector, reflecting significant resource influx and intense competition among technology leaders.
- Other recent notable moves include OpenAI’s collaboration with chipmaker Broadcom to develop proprietary AI chips and a previous agreement with AMD where OpenAI secured chip supply along with an option to purchase up to a 10% stake in AMD.
- Nvidia, another key player, revealed a $100 billion investment plan in OpenAI to expand AI data centers by at least 10 gigawatts, ramping up computational power.
- AMD and Oracle shares have surged approximately 80% this year, reflecting high investor interest in AI-related technology companies.
