AMD’s (AMD) string of AI deals continued Tuesday with the announcement that the company is teaming up with Oracle (ORCL) to deploy 50,000 GPUs for its Oracle Cloud Infrastructure.
The move comes after AMD announced a deal on Oct. 6 to roll out 6 gigawatts worth of chips as part of a multibillion-dollar, multiyear agreement with OpenAI (OPAI.PVT), which will see OpenAI take an upward of 10% stake in AMD.
That deal sent AMD’s stock rocketing more than 23% on the day of the announcement. Shares are up 79% year to date and 28% over the last 12 months.
Like the OpenAI deal, AMD will provide Oracle with its future MI450 AI chip in the second half of 2026. AMD says plans call for the agreement to extend into 2027 and beyond.
The company says it will provide Oracle with the AI chips via its AMD Helios rack servers, complete with its next-generation Epyc Venice CPUs and Pensando Vulcano networking.
The deal further increases AMD’s presence in the AI space while ratcheting up its rivalry with AI leader Nvidia (NVDA).
AMD’s contracts come amid a flurry of arrangements between AI chip companies, data center and infrastructure firms, and AI software providers.
On Monday, OpenAI signed an agreement with Broadcom (AVGO) that will see the two team up to build and deploy 10 gigawatts of custom chips for the ChatGPT developer.
OpenAI also signed a $10 billion deal with Nvidia, which will see Nvidia provide 10 gigawatts of GPUs to the company.
Prior to that, Nvidia invested $100 billion in OpenAI. OpenAI has also signed a $300 billion infrastructure deal with Oracle.
The moves, however, have also raised concerns about the circularity of the AI deals and fears of a potential AI bubble.
And while some experts, such as Amazon (AMZN) founder Jeff Bezos, have pointed out bubble-like behavior in the way some firms are funding AI startups without products, others say that the spending sprees and sky-high stock valuations are powered by strong balance sheets and earnings results.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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AMD’s (AMD) string of AI deals continued Tuesday with the announcement that the company is teaming up with Oracle (ORCL) to deploy 50,000 GPUs for its Oracle Cloud Infrastructure.
The move comes after AMD announced a deal on Oct. 6 to roll out 6 gigawatts worth of chips as part of a multibillion-dollar, multiyear agreement with OpenAI (OPAI.PVT), which will see OpenAI take an upward of 10% stake in AMD.
That deal sent AMD’s stock rocketing more than 23% on the day of the announcement. Shares are up 79% year to date and 28% over the last 12 months.
Like the OpenAI deal, AMD will provide Oracle with its future MI450 AI chip in the second half of 2026. AMD says plans call for the agreement to extend into 2027 and beyond.
The company says it will provide Oracle with the AI chips via its AMD Helios rack servers, complete with its next-generation Epyc Venice CPUs and Pensando Vulcano networking.
The deal further increases AMD’s presence in the AI space while ratcheting up its rivalry with AI leader Nvidia (NVDA).
AMD’s contracts come amid a flurry of arrangements between AI chip companies, data center and infrastructure firms, and AI software providers.
On Monday, OpenAI signed an agreement with Broadcom (AVGO) that will see the two team up to build and deploy 10 gigawatts of custom chips for the ChatGPT developer.
OpenAI also signed a $10 billion deal with Nvidia, which will see Nvidia provide 10 gigawatts of GPUs to the company.
Prior to that, Nvidia invested $100 billion in OpenAI. OpenAI has also signed a $300 billion infrastructure deal with Oracle.
The moves, however, have also raised concerns about the circularity of the AI deals and fears of a potential AI bubble.
And while some experts, such as Amazon (AMZN) founder Jeff Bezos, have pointed out bubble-like behavior in the way some firms are funding AI startups without products, others say that the spending sprees and sky-high stock valuations are powered by strong balance sheets and earnings results.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance
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