Oracle and AMD are building a powerful 200 MW AI cluster with 50,000 GPUs.
Date: 2025-10-15 Author: Oliver Abernathy Categories: BUSINESS
Oracle and AMD announced a strategic partnership to create a massive computing cluster designed for running artificial intelligence systems. The new infrastructure will be built using 50,000 AMD MI450 GPUs, providing a total capacity of approximately 200 megawatts.
Deployment of the project begins in the third quarter of next year at Oracle facilities, and is scheduled to run through 2027, with the possibility of further expansion. This initiative reflects the growing demand for computing power driven by the rapid development of the AI industry and the desire of cloud companies to strengthen their influence in the new technological era.
Financial details of the agreement remain confidential. Following the partnership announcement, AMD shares rose more than 2% in premarket trading, while Oracle shares fell approximately 1%. Analysts note that both companies are strengthening their positions amid intensifying competition in AI chips and cloud computing.
AMD will supply processors and GPUs, while Oracle will integrate the hardware into its data centers. AMD previously entered into a multi-year agreement with OpenAI, which is estimated to generate up to $100 billion in revenue. Oracle also recently signed a five-year contract with the same AI developer worth approximately $300 billion, the largest deal in the company's history. Oracle shares have risen 86% year-to-date, reflecting growing investor interest in AI infrastructure.
The cluster will be built using AMD Helios server systems, which integrate MI450 GPUs and AMD CPUs. These solutions are expected to compete with Nvidia's upcoming Vera Rubin line, expected to launch next year.
Mahesh Thiagarajan, Executive Vice President of Oracle Cloud Infrastructure, noted that the demand for AI computing has reached such a level that companies are forced to turn away most customers. The new infrastructure should help alleviate capacity shortages, especially in the public cloud, where resources will be available to multiple users simultaneously.
Experts predict that the collaboration between AMD and Oracle will be a significant step in the development of global artificial intelligence infrastructure, accelerating the transition to a new era in data processing and machine learning.
