WASHINGTON (AP) — Oracle and Advanced Micro Devices said Tuesday that they are expanding their partnership with the deployment of 50,000 AMD graphic processing units beginning in the third quarter of 2026 with further expansion to follow.
The so-called AI “supercluster” is an enormous, interconnected group of high-performance computers designed to work together as a single system.
AMD shares rose 1.4% in early trading Tuesday, while Oracle slipped 2.9%.
The companies said that next-generation AI models are poised to outgrow the limits of current AI infrastructure.
The expanding AMD-Oracle partnership is the latest in a flurry of intertwined deals in recent months involving top AI developers that are flooding the booming AI sector with resources and money.
On Monday, ChatGPT maker OpenAI announced that it is working with chipmaker Broadcom to design its own artificial intelligence computer chips.
Last week, AMD said it will supply its chips to OpenAI in a joint effort to build up AI infrastructure. OpenAI will also get the option to buy as much as a 10% stake in AMD.
Chipmaker Nvidia said in September that it would invest $100 billion in OpenAI as part of a partnership to add at least 10 gigawatts of Nvidia AI data centers to boost OpenAI's computing power.
OpenAI doesn’t turn a profit, but the privately held San Francisco company is now the world’s most valuable startup, with a market valuation of $500 billion, raising concerns that an AI bubble is looming.
Some industry analysts and financial institutions fear that the rapid growth in tech stock prices have stretched companies' market valuations beyond their actual worth, comparable to the peak of the 2000 dotcom bubble, which eventually deflated and led to a recession.
Last week, the Bank of England flagged the growing risk that tech stock prices pumped up by the AI boom could burst.
Shares of AMD and Oracle, have soared about 80% this year.
Neither company gave a dollar figure for their expanded partnership.
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