(Reuters) -Oracle will offer cloud services using Advanced Micro Devices’ upcoming MI450 artificial intelligence chips, the companies said on Tuesday, as they rush to take advantage of growing demand for infrastructure to support tools like ChatGPT.
The companies will first deploy 50,000 MI450 processors in the third quarter of 2026 and will expand further in 2027 and beyond.
The deal gives AMD another major customer for its upcoming chips, while allowing Oracle to expand its processor offerings as companies rush to secure computing power to develop AI.
“Demand for large-scale AI capabilities is accelerating as next-generation AI models push the boundaries 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 the option to buy up to about a 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 largest cloud deals in history with Oracle, under which the ChatGPT maker is expected to purchase $300 billion in computing power over about five years.
The “AI superclusters” with AMD will be powered by the chipmaker’s “Helios” chassis design.
AMD’s biggest competitor and the most valuable company in the world, Nvidia, now sells racks or fully integrated systems that include GPUs and CPUs, and AMD is quick to follow suit.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Leroy Leo)