How AMD’s GPU Supply Deal Will Shape Oracle’s Cloud Services

In Focus

• AMD has signed an AI chip supply deal with cloud computing giant, Oracle
• Chipmaker will supply 50,000 of upcoming MI450 AI chips to Oracle
• AMD shares surged more than 23% following the deal

Advanced Micro Devices (AMD) has signed a deal to supply AI chips to Oracle for its cloud infrastructure. According to Yahoo Finance, the latest AMD Oracle GPU deal caused the chip maker’s stock to surge more than 23% on October 14, 2025. This year alone, AMD shares have risen 79%, and gained 28% over the past 12 months.

What is the AMD Oracle GPU Agreement?

In the latest deal, Oracle will deploy 50,000 AMD GPUs in its cloud computing infrastructure. AMD will supply the cloud computing giant with its upcoming MI450 AI chips in the second half of 2026.

The AI chips will be supplied through the chip maker’s Helios rack servers and will include its next-gen Epyc Venice CPUs and Pensando Vulcano networking. AMD says that its agreement with Oracle could extend into 2027 and beyond.

The partnership with Oracle brings a top client to AMD’s fold. It also allows Oracle to expand its processor offerings as enterprises rush to secure the compute capacity they need to develop AI.

“Demand for large-scale AI capacity is accelerating as next-generation AI models outgrow the limits of current AI clusters,” the two companies said.

Oracle’s move to scale its cloud infrastructure with AMD GPUs strengthens the chipmaker’s role in the AI industry and intensifies competition with AI chip market leader, NVIDIA.

Growing Wave of AI Partnerships

AMD’s partnership with Oracle comes at a time when a wave of new partnerships between AI chipmakers, AI software providers, and data center firms is sweeping the industry. Last week AMD signed a chip deal with OpenAI to supply 6 gigawatts worth of AI GPUs to the AI startup.

Under the agreement, OpenAI will acquire and deploy AMD Instinct MI450 GPUs over several years and in different hardware generations. OpenAI has the option of getting an upwards of 10% stake in AMD.

Additionally, OpenAI has partnered with Broadcom to develop and launch its own AI processors in a move that could redefine the dynamics around data center networking and chip supply strategies. On October 14, 2025, the two companies agreed to team up in the development and deployment of 10 gigawatts of customer chips for OpenAI.

AMD-Oracle GPU Deal at a Glance

• AMD AI chips will be supplied through its Helios rack servers
• Chip supply agreement could extend into 2027 and beyond
• AMD signed a chip deal with OpenAI to supply 6 gigawatts worth of AI GPUs

OpenAI’s Deals with NVIDIA and Oracle

OpenAI also closed a $10 billion deal with AI chipmaker, NVIDIA. The agreement will see NVIDIA supply 10 gigawatts of GPUs to OpenAI. This deal came after NVIDIA invested $100 billion in the AI startup.

OpenAI also signed one of the biggest cloud deals with Oracle. The agreement will see the ChatGPT maker purchase $300 billion worth of computing power from Oracle for about five years. OpenAI’s agreement is among the multi-billion contracts that informed Oracle’s $500 billion cloud revenue outlook at the beginning of September 2025.

Concerns Over Circularity of AI Deals

Concerns over the circularity of AI deals continue to rise. Experts warn that an AI bubble could be forming as stock prices of companies in the industry soar. OpenAI CEO Sam Altman and Amazon founder Jeff Bezos have recently said that investors might be getting too carried away as billions flow into the industry. There are also growing concerns about a feedback loop in AI spending, where companies like NVIDIA, OpenAI, and AMD continue to announce deals that seem to drive more hype and investment into the same space.