Oracle is preparing to take a major step to challenge NVIDIA's dominance in the AI chip market. The company announced that it will begin deploying 50,000 AMD MI450 AI accelerators in its infrastructure in 2026. This move marks Oracle's rise in the competitive AI cloud market, as many companies are competing to obtain high-performance chips to support generative AI workloads.
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Karan Batta, Senior Vice President of Oracle Cloud Infrastructure, said, "We believe our customers will be very pleased with AMD's products, especially in the area of inference." The announcement includes two initiatives: on one hand, Oracle is enhancing its hardware capabilities through collaboration with AMD, and on the other hand, it has launched a new data platform that supports open standards.
Oracle stated that it will start deploying AMD's AI accelerators in the third quarter of 2026 and plans to expand further once production capacity increases. This plan strengthens Oracle's position in the rapidly growing AI infrastructure market, offering customers new choices in a market currently dominated by NVIDIA GPUs. After the announcement, AMD's stock rose more than 3%, showing market confidence in its ability to compete on a large scale.
In addition, this investment and deep collaboration with AMD reflect the industry's increasing emphasis on hardware diversity. Oracle's upcoming cloud infrastructure expansion will provide customers with AMD and NVIDIA GPU instances, enhancing flexibility for AI model training and inference. This move is closely related to Oracle's five-year agreement with OpenAI worth up to $30 billion, under which OpenAI will use Oracle's cloud infrastructure to run AI workloads.
However, there are still questions about the economics of this deal. Oracle and AMD have not disclosed the cost structure or procurement schedule, and analysts are speculating about when the new capacity will come online and the profit margins Oracle can achieve.
Aside from significant updates in hardware, Oracle also launched the Autonomous AI Lakehouse, a next-generation data and analytics platform designed to unify cross-cloud data management and support the open Apache Iceberg table format, facilitating data interoperability. The platform is built on Oracle's autonomous database, combining AI-driven data preparation, SQL query acceleration, and built-in governance features. According to InfoWorld, the service integrates with external catalogs such as Databricks Unity, AWS Glue, and Snowflake Polaris, demonstrating Oracle's commitment to transitioning towards vendor-neutral interoperability.
Key Points:
1. 🚀 Oracle plans to deploy 50,000 AMD AI accelerators in 2026, challenging NVIDIA's position in the market.
2. 📊 The newly launched Autonomous AI Lakehouse platform supports open standards, promotes data interoperability, and enhances cross-cloud management capabilities.
3. 🤝 Oracle's deep collaboration with OpenAI will further drive the development of AI cloud services.
