(Reuters) -Oracle will offer cloud services using Advanced Micro Devices’ upcoming MI450 artificial intelligence chips, the companies said on Tuesday, as they rush to tap the booming demand for infrastructure to support tools such as ChatGPT.

The companies will first deploy 50,000 MI450 processors in the third quarter of 2026 and further expand in 2027 and beyond.

Shares of AMD were up nearly 3% in premarket trading.

The deal gives AMD another major client for its upcoming chips, while allowing Oracle to expand its processor offerings, at a time when businesses are rushing to secure compute capacity for developing AI.

“Demand for large-scale AI capacity is accelerating as next-generation AI models outgrow the limits of current AI clusters,” the companies said.

AMD last week unveiled a

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