ISTANBUL 

Oracle's cloud unit announced Tuesday that it will deploy 50,000 artificial intelligence (AI) graphics processing units (GPUs) starting in the second half of 2026.

"Oracle and AMD today announced a major expansion of their long-standing, multi-generation collaboration to help customers significantly scale their AI capabilities and initiatives," the US tech company said in a statement.

AMD's Instinct MI450 processors, which were unveiled earlier this year, will be used by Oracle.

They are AMD's first AI chips that can be put together to form a larger system the size of a rack, allowing 72 chips to function as one, which is necessary to develop and implement the most sophisticated AI algorithms, according to the CNBC network.

"Our customers are building some of the world’s most ambitious AI applications, and that requires robust, scalable, and high-performance infrastructure,” said Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure.

The partnership was seen as the latest sign that cloud companies are choosing AMD’s GPUs as an alternative to Nvidia’s chips for AI development.

A partnership between OpenAI and AMD for processors needing 6 gigawatts of power over several years, with a 1-gigawatt deployment beginning in 2026, was announced earlier this month. According to the agreement, OpenAI might eventually acquire up to 160 million AMD shares, or roughly 10% of the business, if the deployment is successful.

OpenAI and Oracle signed a potentially $300 billion five-year cloud agreement in September.