Advanced Micro Devices Inc (AMD), Nvidia Corp’s nearest rival in artificial intelligence (AI) processors, said Oracle Corp will deploy a large batch of its forthcoming MI450 chips next year.
Oracle will put 50,000 of the semiconductors in data center computers starting in the third quarter of next year, according to a statement yesterday. The systems will contain AMD processors and networking components.
The announcement is the latest in a frenzy of commitments by big tech and AI companies to build more computing infrastructure. They’re all racing to meet demand for AI services that they say is skyrocketing.
Photo: REUTERS
It’s also another endorsement of AMD technology. The Santa Clara, California-based company is working to become a credible alternative to Nvidia, the dominant provider of AI processors.
Like its much larger rival, AMD offers so-called AI accelerators — based on graphics processing units — as well as general-purpose processors and some networking chips. It’s now trying to up its game further and match Nvidia’s ability to provide data center owners with complete computers.
In the second quarter, AMD shipped about 100,000 AI processors, according to research firm IDC. Nvidia delivered 1.5 million in the same period.
Oracle and AMD didn’t specify when they expect to complete the installation, but they see it expanding in 2027 “and beyond.” The companies also didn’t say how much of AMD’s total supply would be claimed by Oracle.
The Oracle announcement follows an AMD deal with OpenAI, the AI start-up that has clinched computing agreements with a number of chipmakers. In that longer-term partnership, OpenAI is slated to buy 6 gigawatts’ worth of computers featuring AMD accelerators over multiple years.
On Monday, OpenAI also announced an agreement with chipmaker Broadcom Inc. The start-up agreed to buy custom chips and networking components from Broadcom to help power its AI services.
OpenAI had already struck deals for data centers and chips that easily top US$1 trillion, and the company plans to spend tens of billions of dollars more on Broadcom chips, according to people familiar with the matter.
The agreement, which follows OpenAI deals with Nvidia and AMD, is meant to add 10 gigawatts’ worth of AI data center capacity — a level equivalent to the peak energy demand of New York City.
The wrinkle with the Broadcom pact is it will let OpenAI tailor the chips to meet specific needs. The start-up said it would unlock “new levels of capability and intelligence” by applying lessons gleaned developing AI models to hardware technology.
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