Ankara: Oracle's cloud unit announced Tuesday that it will deploy 50,000 artificial intelligence (AI) graphics processing units (GPUs) starting in the second half of 2026. "Oracle and AMD today announced a major expansion of their long-standing, multi-generation collaboration to help customers significantly scale their AI capabilities and initiatives," the US tech company said in a statement.

According to Anadolu Agency, AMD's Instinct MI450 processors, which were unveiled earlier this year, will be utilized by Oracle. These are AMD's first AI chips capable of being assembled to create a larger system the size of a rack, allowing 72 chips to function as one. This capability is critical for developing and implementing the most sophisticated AI algorithms, as reported by the CNBC network.

"Our customers are building some of the world's most ambitious AI applications, and that requires robust, scalable, and high-performance infrastructure," said Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure. The partnership is seen as an indication that cloud companies are opting for AMD's GPUs as an alternative to Nvidia's chips for AI development.

Earlier this month, a partnership between OpenAI and AMD for processors requiring 6 gigawatts of power over several years, with a 1-gigawatt deployment beginning in 2026, was announced. According to the agreement, OpenAI might eventually acquire up to 160 million AMD shares, or roughly 10% of the business, if the deployment is successful. Additionally, OpenAI and Oracle signed a potentially $300 billion five-year cloud agreement in September.