Headlines
Oracle to offer cloud services using AMD's upcoming AI chips
Published by Global Banking and Finance Review
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Oracle partners with AMD to offer cloud services using MI450 AI chips, deploying 50,000 processors by Q3 2026 to meet AI demand.
(Reuters) -Oracle will offer cloud services using Advanced Micro Devices' upcoming MI450 artificial intelligence chips, the companies said on Tuesday, as they rush to tap the booming demand for infrastructure to support tools such as ChatGPT.
The companies will first deploy 50,000 MI450 processors in the third quarter of 2026 and further expand in 2027 and beyond.
The deal gives AMD another major client for its upcoming chips, while allowing Oracle to expand its processor offerings, at a time when businesses are rushing to secure compute capacity for developing AI.
"Demand for large-scale AI capacity is accelerating as next-generation AI models outgrow the limits of current AI clusters," the companies said.
AMD last week unveiled a deal to supply AI chips to OpenAI in a multi-year deal, giving the ChatGPT creator an option to buy up to roughly 10% stake in the chipmaker.
AMD had worked with OpenAI to improve the design of its MI450 chips for AI work and the startup is building a one-gigawatt facility based on the processor next year.
OpenAI is also reported to have signed one of the biggest cloud deals ever with Oracle, under which the ChatGPT maker is expected to buy $300 billion in computing power for about five years.
The "AI superclusters" with AMD will be powered by the chipmaker's "Helios" rack design.
AMD's larger competitor and the world's most valuable firm - Nvidia - now sells racks, or fully integrated systems which include GPUs and CPUs, with AMD rushing to follow suit.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo)
Cloud computing is the delivery of computing services over the internet, allowing users to access and store data and applications remotely instead of on local servers.
AI chips are specialized processors designed to accelerate artificial intelligence tasks, enhancing the performance of machine learning and deep learning applications.
A processor, or CPU, is the main component of a computer that performs calculations and executes instructions, playing a crucial role in overall system performance.
A partnership in business is a formal arrangement where two or more parties collaborate to manage and operate a business, sharing profits and responsibilities.
Demand in economics refers to the desire and ability of consumers to purchase goods and services at various prices, influencing market dynamics.
Explore more articles in the Headlines category
