Oracle to Roll Out 50,000 AMD AI Chips, Challenging Nvidia in Cloud

Oracle is preparing a bold push into AI clouds. In Q3 2026, it plans to deploy 50,000 AMD MI450 chips across its infrastructure. This marks a major step beyond its current use of AMD hardware.

These chips are built for scale. They support rack-scale configurations, letting 72 chips function as a single AI compute unit. That design helps accelerate training and inference of large models.

Oracle already uses AMD’s MI300X and MI355X processors. The new rollout adds depth, giving Oracle more flexibility and reducing reliance on any single chip supplier.

The AI market took notice: AMD stock jumped more than 3% on the announcement. Analysts see Oracle’s move as a signal of growing confidence in AMD’s roadmap.

Still, the plan comes with complexity. Oracle warns of weaker demand from China in 2026, which could suppress growth.

For now, the company remains cautious yet ambitious: it forecasts flat to slight growth in total net sales in the coming year.

By aligning with AMD and diversifying its hardware base, Oracle hopes to stiffen its position in the competitive AI cloud race — and ensure it isn’t overly dependent on a single chip giant.