Oracle’s (ORCL.US) Cloud Infrastructure division announced that it will deploy 50,000 AMD (AMD.US) GPUs starting in the second half of 2026 as an alternative to Nvidia solutions for artificial intelligence applications. This signals intensifying competition in the AI GPU market, where Nvidia has long held a dominant position – its chips were used, among other things, to develop ChatGPT, and it holds over 90% market share in the data center market. For Oracle, the next-generation AMD Instinct MI450 chips will be integrated into its cloud infrastructure for advanced AI applications, particularly in the area of inference, which Oracle highlights as a key area for customer adoption of the new chips.
For the stock market, the announcement had an immediate impact. AMD shares gained 3.07% in pre-market trading on Wall Street. More broadly, the market has seen a clear shift in infrastructure investment preferences towards AI solutions in recent weeks. OpenAI itself, until recently closely associated with Nvidia, has signed a new multi-year agreement for AMD chips (6 GW of capacity over several years), which, if fully implemented, could translate into OpenAI owning as much as 10% of AMD’s shares.
With today’s gains before the US markets open, the company’s shares remain close to their all-time highs. Source: xStation
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