WASHINGTON (AP) — Oracle and Advanced Micro Devices said Tuesday they are expanding their partnership to deploy 50,000 AMD graphics processing units beginning in the third quarter of 2026, with further expansion to follow.
The so-called AI supercluster is a massive, interconnected group of powerful computers designed to work together as one system.
AMD shares rose 1.4% in early trading on Tuesday, while Oracle fell 2.9%.
The companies said that next-generation AI models are poised to outgrow the limits of current AI infrastructure.
The growing AMD-Oracle partnership is the latest in a series of intertwined deals in recent months involving top AI developers flooding the booming AI sector with resources and money.
On Monday, ChatGPT maker OpenAI announced that this is the case in collaboration with chip maker Broadcom to design it yourself artificial intelligence computer chips.
Last week AMD said yes deliver his chips Unpleasant Open AI in a concerted effort to build AI infrastructure. OpenAI will also have the option to buy as much as 10% of shares in AMD.
Chipmaker Nvidia said in September it would invest $100 billion in it Open AI as part of a partnership to add at least 10 gigawatts of Nvidia AI data centers to increase OpenAI’s computing power.
OpenAI doesn’t make a profit, but the private San Francisco company is now out of the world most valuable startupwith a market valuation of $500 billion, raising concerns an AI bubble is looming.
Some industry analysts and financial institutions fear that the rapid growth in technology stock prices has pushed companies’ market valuations above their true value, similar to the stock market’s peak. the dotcom bubble of 2000which eventually deflated and led to a recession.
Last week, the Bank of England flagged the growing risk that tech stock prices inflated by the AI boom could burst.
Shares of AMD and Oracle are up about 80% this year.
Neither company provided a dollar amount for their expanded partnership.
