Oracle to launch AI supercluster with 50,000 AMD GPUs in 2026

LAS VEGAS/SANTA CLARA - Oracle (NYSE:ORCL) and AMD (NASDAQ:AMD), the semiconductor giant with a market capitalization of $351 billion and impressive 79% year-to-date returns according to InvestingPro, announced plans to deploy a major AI supercluster powered by 50,000 AMD Instinct MI450 Series GPUs beginning in the third quarter of 2026, according to a press release statement.

The initiative expands the companies’ existing partnership, which began with the launch of AMD Instinct MI300X GPU capabilities on Oracle Cloud Infrastructure (OCI) in 2024. The planned supercluster will utilize AMD’s "Helios" rack design, incorporating AMD’s next-generation EPYC processors and Pensando networking technology. AMD’s strong financial health, evidenced by a healthy current ratio of 2.49 and 27% revenue growth, positions it well for this expansion.

"By bringing together the latest AMD processor innovations with OCI’s secure, flexible platform and advanced networking powered by Oracle Acceleron, customers can push the boundaries with confidence," said Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure.

The AMD Instinct MI450 Series GPUs will offer up to 432 GB of HBM4 memory and 20 TB/s of memory bandwidth per GPU, enabling customers to train AI models that are 50 percent larger than previous generations entirely in-memory.

Oracle also announced the general availability of OCI Compute with AMD Instinct MI355X GPUs, which will be available in Oracle’s zettascale Supercluster that can scale to 131,072 GPUs.

The companies aim to address growing demand for large-scale AI capacity as next-generation AI models exceed the capabilities of current AI clusters. The infrastructure is designed to support advanced language models, generative AI, and high-performance computing workloads.

The announcement was made at Oracle AI World in Las Vegas, where the companies highlighted their decade-long collaboration on data center technologies. For detailed analysis and 17 additional key insights about AMD’s financial outlook, visit InvestingPro, where you’ll find comprehensive research reports and expert financial analysis.

In other recent news, Advanced Micro Devices, Inc. (AMD) has made significant strides with its partnership with OpenAI, prompting several financial firms to adjust their outlooks on the company. Mizuho raised its price target for AMD to $275 from $205, highlighting a deal with OpenAI that spans six tranches from the fourth quarter of 2026 through 2030. Similarly, TD Cowen increased its price target to $270 from $195, maintaining a Buy rating, while BofA Securities reiterated its $250 price target, noting the progress on OpenAI’s first 1GW deployment scheduled for late 2026. Furthermore, Moody’s upgraded AMD’s senior unsecured ratings to A1, citing a strong multi-year revenue and earnings growth outlook due to increased demand for data center GPUs. In a separate development, Wolfe Research upgraded Monolithic Power Systems’ stock rating to Outperform, setting a price target of $1,200. This upgrade is based on a conservative path to achieving earnings per share of $24 or higher by 2027. These recent developments reflect the evolving landscape for both AMD and Monolithic Power Systems in the tech industry.

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