Oracle and AMD have signed a strategic agreement to launch one of the largest artificial intelligence clusters in the world, which will operate based on 50,000 AMD MI450 graphics processors. The project will have a total power capacity of approximately 200 MW, with implementation starting in the third quarter of next year on specialized Oracle platforms.
This is reported by Finway
Strategic Partnership Until 2027 and Competition with Nvidia
The collaboration between AMD and Oracle is expected to last at least until 2027, with the possibility of further expansion. This decision reflects the rapid growth in demand for artificial intelligence infrastructure and increasing competition among AI chip manufacturers and cloud platforms. Oracle will integrate AMD processors and graphics accelerators into the server racks of its data centers, while the new AMD Helios servers will directly compete with the upcoming Nvidia Vera Rubin lineup, which will enter the market next year.
“The demand for computing resources for AI is so high that companies are having to turn away most clients. The new project with AMD is expected to partially address the capacity shortage, especially in the public cloud segment, where resources will be available to numerous users.”
Market Reactions and Development Prospects
Following the announcement of the partnership, AMD’s shares rose by over 2% in pre-market trading, while Oracle’s shares fell by approximately 1%. Both companies are striving to strengthen their market positions in light of the increasing competition in high-performance computing and cloud solutions. The financial details of the agreement remain undisclosed.
AMD continues to expand its presence in the artificial intelligence sector: the company recently signed a multi-year contract with OpenAI, with potential revenue estimated at $100 billion. Oracle, in turn, has signed a large-scale agreement to provide cloud capabilities for the AI giant worth around $300 billion over five years. Since the beginning of the year, Oracle’s shares have risen by 86%, indicating heightened investor interest in infrastructure projects for artificial intelligence.
The new cluster will be based on AMD Helios server systems, which combine MI450 GPUs and custom-designed CPUs. These innovative solutions will enable Oracle and AMD to become significant players in the global market for cloud infrastructure for AI.
It is worth noting that Oracle recently raised $18 billion through a bond issuance, providing additional resources for further development of large-scale infrastructure projects.