Forbes·2025-10-14 13:40Core Insights - Oracle's cloud business is set to deploy tens of thousands of AMD's latest AI chips, specifically the Instinct MI450, starting in Q3 2026, marking an expansion of their partnership amid rising demand for AI infrastructure [1][2] - AMD recently secured a multibillion-dollar deal with OpenAI, which includes the acquisition and deployment of 6 gigawatts of AMD's AI chips, indicating a significant revenue potential for AMD [3][4] - The competitive landscape is intensifying, particularly with Nvidia's plans to invest $100 billion in OpenAI and deploy at least 10 gigawatts of its systems, highlighting the growing arms race in AI infrastructure [4] Company Developments - Oracle and AMD have not disclosed the financial terms of their latest deal, but it is part of a broader trend where next-generation AI models are expected to exceed the capabilities of existing infrastructure [2] - Following the announcement of the partnership with Oracle, AMD's shares rose by 2.2% in premarket trading, while Oracle's shares fell by 1.4% [2] - AMD's partnership with OpenAI includes a warrant for up to 160 million shares, representing an estimated 10% stake in AMD, which will vest upon meeting specific share-price milestones [3] Industry Context - The demand for AI infrastructure has surged, leading to significant spending in the sector, as evidenced by Oracle's recent agreements and OpenAI's planned $300 billion purchase of computing power over five years starting in 2027 [4] - Nvidia's competitive strategy includes collaboration with Intel on new data center and consumer chips, securing approximately $5 billion worth of Intel's stock, further intensifying competition in the AI chip market [4]