Chasing NVIDIA Corporation (NVDA.US) pays off! AMD (AMD.US) receives a large AI chip order from Oracle Corporation (ORCL.US).

AMD (AMD.US) has won a large artificial intelligence (AI) chip order from Oracle Corporation (ORCL.US), indicating progress in catching up to NVIDIA Corporation (NVDA.US) in the thriving AI chip market. Boosted by this news, AMD's stock in the U.S. rose nearly 4% during trading on Tuesday. According to a statement released on Tuesday, Oracle Corporation's cloud infrastructure (OCI) will start deploying 50,000 of AMD's upcoming MI450 AI chips in its data centers from the third quarter of 2026. The MI450 is AMD's most advanced GPU (graphics processing unit) to date and will be integrated into the company's Helios server rack system along with AMD's proprietary central processing unit (CPU), directly targeting NVIDIA Corporation's next generation "Vera Rubin" series of AI chips. With explosive growth in AI computing demand, large tech companies and AI chip enterprises are driving a trend in building computational infrastructure. AMD is striving to become a strong competitor to NVIDIA Corporation in the AI chip market. Similar to its larger competitors, AMD provides GPU-based AI accelerators, general-purpose processors, and some networking chips. The company is further enhancing its capabilities to provide complete computing system solutions to data center operators similar to NVIDIA Corporation. According to data from research firm IDC, AMD shipped approximately 100,000 AI chips in the second quarter, while NVIDIA Corporation shipped as many as 1.5 million AI chips during the same period. This latest order also demonstrates market recognition of AMD's technology. Oracle Corporation and AMD did not disclose a specific timeline for the completion of full deployment, but both parties expect the project to expand further in 2027 and beyond. The two companies also did not specify the proportion of Oracle Corporation's order in relation to AMD's overall production. OCI's Senior Vice President Karan Batta stated, "We believe customers will be very willing to adopt AMD's chips, particularly in the AI inference field." OCI's Executive Vice President Mahesh Thiagarajan added, "We will continue to work with AMD to provide the best value, open, secure, and scalable cloud infrastructure to meet the demands of the AI era." Industry analysts believe that this cooperation signifies the first large-scale application of AMD's MI450 in a public cloud setting, which means that more customers can rent its AI computing resources, potentially narrowing the gap between AMD and NVIDIA Corporation in the data center market. Earlier, AMD had just signed a chip supply agreement with the AI startup OpenAI, which led to a strong increase in AMD's stock price. Under this long-term partnership, OpenAI will purchase a total computing power of 6 gigawatts (GW) using AMD AI chips in the coming years. Although Oracle Corporation's data centers also provide some computing resources to OpenAI, the two collaborations do not overlap. Additionally, OpenAI announced on Monday a partnership with chip manufacturer Broadcom Inc. (AVGO.US) to add 10 GW of computing power capacity to its AI computing infrastructure. On the other hand, former chip giant Intel Corporation (INTC.US) is also trying to re-enter the AI chip market. The company is developing a new AI accelerator called "Crescent Island" aimed at directly competing with NVIDIA Corporation and AMD's products. Intel Corporation stated in a Monday announcement that the "Crescent Island" chip is optimized for the AI inference phase (i.e., the operational phase after model training) and features high energy efficiency and large memory capacity. The company plans to provide samples to potential customers in the latter half of 2026.