Oracle to deploy AMD Instinct MI355X GPUs in cloud for AI workloads

AUSTIN, Texas and SANTA CLARA, Calif. - Oracle (NYSE: ORCL), a $559 billion market cap technology giant with a GOOD financial health rating according to InvestingPro, announced Thursday it will add AMD Instinct MI355X GPUs to its cloud infrastructure offerings, providing customers with additional options for AI computing resources.

According to a press release, Oracle Cloud Infrastructure (OCI) will deploy zettascale AI clusters with up to 131,072 MI355X GPUs, aimed at supporting large-scale AI training and inference workloads. This expansion aligns with Oracle’s strong revenue growth of 6.23% over the last twelve months, with total revenue reaching $55.78 billion.

The new GPU offering is designed to deliver more than twice the price-performance compared to previous generations, featuring 288 gigabytes of high-bandwidth memory and up to eight terabytes per second of memory bandwidth.

"AMD Instinct GPUs, paired with OCI’s performance, advanced networking, flexibility, security, and scale, will help our customers meet their inference and training needs for AI workloads and new agentic applications," said Mahesh Thiagarajan, executive vice president at Oracle Cloud Infrastructure.

The AMD Instinct MI355X GPUs will be deployed in a liquid-cooled design that supports 125 kilowatts per rack with 64 GPUs per rack. Oracle states this configuration enables faster training times with higher throughput and lower latency.

Oracle will also be the first to deploy AMD Pollara AI NICs on backend networks, providing advanced networking capabilities for AI workloads.

The new offering includes support for the 4-bit floating point compute standard, which Oracle claims enables more cost-effective deployment of large language and generative AI models.

Oracle (NYSE: ORCL) and AMD’s collaboration continues their partnership in providing cloud computing solutions. The companies did not disclose pricing or specific availability dates for the new GPU offerings.

In other recent news, Oracle reported impressive fiscal fourth-quarter results, with revenue and earnings per share exceeding expectations. The company has raised its fiscal year 2026 revenue guidance to over $67 billion, reflecting a 16% year-over-year growth in constant currency. Oracle Cloud Infrastructure (OCI) demonstrated significant growth, with a 62% increase in the fourth quarter and projections to exceed 70% growth in fiscal year 2026. The company’s remaining performance obligations (RPO) are also expected to grow more than 100% in the same period.

Several financial firms have responded positively to Oracle’s performance and future outlook. BNP Paribas Exane raised its price target to $226, citing strong growth prospects across Oracle’s key business segments. UBS increased its target to $225, highlighting Oracle’s extraordinary backlog growth. Cantor Fitzgerald and Stifel also adjusted their targets to $216 and $180, respectively, emphasizing the company’s robust Infrastructure as a Service (IaaS) growth projections.

However, some analysts have expressed concerns about potential margin erosion and the need for increased capital expenditures to support growth. Despite these concerns, the overall sentiment remains positive, with many firms maintaining favorable ratings on Oracle’s stock. The company’s participation in projects like Stargate further underscores its position as a leader in AI cloud infrastructure.

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