Oracle, AMD Expand Partnership for AI Supercluster Boost

Published Date : 14/10/2025 

Oracle and Advanced Micro Devices (AMD) are expanding their partnership with the deployment of 50,000 AMD graphic processing units, aiming to support the rapidly growing AI sector. 

Oracle and Advanced Micro Devices (AMD) announced on Tuesday a significant expansion of their partnership. This collaboration involves the deployment of 50,000 AMD graphic processing units (GPUs), scheduled to begin in the third quarter of 2026, with further expansions to follow. The deployment is part of an effort to build an AI 'supercluster,' a massive, interconnected group of high-performance computers designed to work together as a single system.

The so-called AI supercluster is a critical development in the AI sector, which is experiencing rapid growth. These superclusters are essential for handling the computational demands of next-generation AI models, which are expected to outgrow the limits of current AI infrastructure. The expanding AMD-Oracle partnership is the latest in a series of deals involving top AI developers, reflecting the significant investment and resources being poured into the AI sector.

In early trading on Tuesday, AMD shares rose 1.4%, while Oracle shares slipped 2.9%. Despite the slight dip, both companies remain optimistic about the long-term benefits of their partnership. The joint effort is expected to enhance the capabilities of AI models and support the development of more advanced applications.

On Monday, OpenAI, the maker of the popular ChatGPT, announced a partnership with chipmaker Broadcom to design its own AI computer chips. This move underscores the importance of customized hardware in optimizing AI performance. Last week, AMD also announced that it will supply its chips to OpenAI, further strengthening the AI infrastructure. OpenAI will have the option to buy up to a 10% stake in AMD, highlighting the mutual benefits of these collaborations.

Chipmaker Nvidia has also made significant investments in the AI sector. In September, Nvidia announced a $100 billion investment in OpenAI as part of a partnership to add at least 10 gigawatts of Nvidia AI data centers to boost OpenAI's computing power. OpenAI, despite not turning a profit, is now the world's most valuable startup, with a market valuation of $500 billion. This valuation has raised concerns about a potential AI bubble, similar to the 2000 dotcom bubble, which eventually led to a recession.

Some industry analysts and financial institutions fear that the rapid growth in tech stock prices has stretched companies' market valuations beyond their actual worth. Last week, the Bank of England flagged the growing risk that tech stock prices, driven by the AI boom, could burst. Despite these concerns, shares of AMD and Oracle have soared about 80% this year, reflecting the strong investor confidence in the AI sector.

Neither company provided a dollar figure for their expanded partnership, but the strategic alliance is expected to play a crucial role in the development and deployment of advanced AI technologies. As the AI sector continues to boom, partnerships like these are essential for driving innovation and maintaining a competitive edge. 

Frequently Asked Questions (FAQS): 

Q: What is an AI supercluster?

A: An AI supercluster is a large, interconnected group of high-performance computers designed to work together as a single system. It is essential for handling the computational demands of advanced AI models and applications.

Q: Why are AMD and Oracle expanding their partnership?

A: AMD and Oracle are expanding their partnership to deploy 50,000 AMD graphic processing units (GPUs) to support the rapidly growing AI sector and build an AI supercluster.

Q: What is the significance of OpenAI's partnership with Broadcom?

A: OpenAI's partnership with Broadcom to design its own AI computer chips highlights the importance of customized hardware in optimizing AI performance and enhancing computational capabilities.

Q: How much has Nvidia invested in OpenAI?

A: Nvidia has announced a $100 billion investment in OpenAI as part of a partnership to add at least 10 gigawatts of Nvidia AI data centers to boost OpenAI's computing power.

Q: What are the concerns about an AI bubble?

A: Some industry analysts and financial institutions are concerned that the rapid growth in tech stock prices, driven by the AI boom, could lead to a bubble similar to the 2000 dotcom bubble, potentially causing a market correction or recession. 

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