Oracle buys 30,000 AMD AI accelerators for growth

Oracle has made a significant multi-billion dollar deal with AMD to purchase 30,000 AI accelerators. These accelerators are part of AMD’s new Instinct MI355X series, which is designed to compete with Nvidia's popular Blackwell GPUs. The MI355X accelerators are set to be available by mid-2025. They will feature advanced technology, including 288GB of memory and fast data transfer capabilities. This positions them as a strong alternative to Nvidia's offerings. Larry Ellison, Oracle's Chairman, revealed the deal during a recent earnings call. He mentioned that the cluster of MI355X GPUs will support high-performance AI tasks. Oracle is also building a separate cluster using 64,000 Nvidia GPUs, called Stargate. Ellison highlighted that Oracle aims to provide faster and more cost-effective AI solutions compared to competitors. He discussed the strategy of starting smaller with data centers and expanding based on demand, which helps manage costs effectively. This collaboration shows AMD's efforts to increase its market share in the AI space, directly challenging Nvidia's dominance. The upcoming MI355X series may give AMD an advantage in the growing field of artificial intelligence technology.