Oracle joins hands with AMD to seize AI business opportunities and will launch MI450 chip cloud service

Oracle and AMD announced on the 14th that Oracle will launch a cloud service using AMD's MI450 artificial intelligence (AI) chip. It shows that the two are optimistic about the strong demand for infrastructure to support AI tools such as ChatGPT and are working together to attack it.

Reuters reported that according to the plans of both parties, Oracle will first deploy 50,000 MI450 processors in the third quarter of this year, and then expand the scope in 2027 and beyond.

This adds another important customer to AMD's soon-to-be-listed chips, and its stock price surged by more than 3% in pre-market trading on the 14th. In addition, various companies are competing for computing power in order to develop AI. This cooperation case also allows Oracle to provide more processor choices.

Oracle and Supermicro stated: "As the growth of next-generation AI models exceeds the limitations of existing AI clusters, the demand for large-scale AI computing power is accelerating."

Supermicro announced last week that it has obtained a multi-year AI chip supply contract from OpenAI, the developer of ChatGPT. The two parties have previously collaborated to improve the MI450 design for AI tasks.

OpenAI is building a 1GW (million-kilowatt) facility scheduled to use MI450 chips next year, and it is reported that OpenAI has signed one of the largest cloud computing contracts in history with Oracle, and is expected to purchase computing power worth US$300 billion (approximately NT$9.21 billion) in about five years.

Further reading: Enter into strategic cooperation with OpenAI! MI450 will be deployed in the second half of next year, AMD surges 25% before the market opens