Oracle Cloud Infrastructure on Tuesday announced it will deploy 50,000 Advanced Micro Devices graphics processors starting in the second half of 2026.
AMD shares climbed about 3% in premarket trading. Oracle shares ticked slightly lower.
The move is the latest sign that cloud companies are increasingly offering AMD's graphics processing units as an alternative to Nvidia's market-leading GPUs for artificial intelligence.
"We feel like customers are going to take up AMD very, very well — especially in the inferencing space," said Karan Batta, senior vice president of Oracle Cloud Infrastructure.
Oracle will use AMD's Instinct MI450 chips, which were announced earlier this year.
They are AMD's first AI chips that can be assembled into a larger rack-sized system that enables 72 of the chips to work as one, which is needed to create and deploy the most advanced AI algorithms.
OpenAI CEO Sam Altman appeared with AMD CEO Lisa Su at a company event in June to announce the product.