Oracle to offer cloud services using AMD's upcoming AI chips

(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. Shares of AMD rose more than 3% in premarket trading, bucking a broader market selloff as renewed concerns over a U.S.-China trade conflict dampened investor sentiment. Oracle shares were down about 1%. 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 and Max A. Cherney in San Francisco; Editing by Leroy Leo)

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