AMD Secures Consecutive Orders in the AI Chip Market
Threatening Nvidia's Dominance
On October 14 (local time), cloud service provider Oracle announced that it would deploy 50,000 advanced artificial intelligence (AI) chips from U.S. semiconductor company AMD into its own cloud infrastructure. As a result, AMD's stock price rose slightly, while Nvidia's stock price closed lower due to concerns over intensifying competition in the AI chip market as well as escalating tensions between the United States and China.
On the same day, Oracle announced plans to expand its partnership with AMD and to launch AI cloud services powered by 50,000 AMD 'Instinct MI450 Series' graphics processing units (GPUs) starting from the third quarter of next year.
Oracle stated that it would begin with an initial deployment of 50,000 GPUs and plans to further expand the adoption of these GPUs in 2027 and beyond.
The company also explained that all of its planned new AI data centers will be built entirely with AMD processors and networking systems, and that the vertically-optimized architecture-from chips to server networks-has been designed to deliver maximum performance, scalability, and energy efficiency for large-scale AI training and inference.
AMD's MI450 GPU chip is a new product scheduled for release next year, and AMD recently signed a large-scale supply contract with OpenAI. OpenAI plans to build a 6GW-class facility based on AMD chips over the coming years.
Currently, Nvidia maintains an overwhelming lead in the AI chip market with a share of over 90%, but AMD is emerging as a threat by securing a series of major orders in recent times.
On the New York Stock Exchange that day, AMD closed at $218.09, up 0.77% from the previous day. In contrast, Nvidia, the company with the largest market capitalization, saw its share price fall by 4.4% compared to the previous day.
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