OpenAI, Meta and Oracle Back AMD Instinct MI450 Deals

OpenAI, Meta and Oracle each signed multi‑gigawatt agreements to deploy AMD’s Instinct MI450 GPUs beginning in the second half of 2026. OpenAI committed to as much as 6 gigawatts of capacity, starting with an initial 1GW deployment in H2 2026. Meta reached a multi‑year agreement for up to 6GW, also with initial deployments in the second half of 2026. Oracle agreed to an initial deployment of 50,000 MI450 GPUs for its cloud infrastructure, with plans to add capacity from 2027. These customers are among the largest buyers of AI infrastructure.

AMD shares have risen roughly 150% year‑to‑date. Several Wall Street analysts raised price targets and ratings after the agreements. Barclays analyst Tom O’Malley increased his price target to $665 from $500 and kept an Overweight rating, writing that “CPU-to-GPU ratios are narrowing as CPU demand reaches new levels in the rapidly expanding world of agentic AI.” Citi’s Atif Malik upgraded AMD to Buy from Neutral and raised his target to $575 from $460, calling the company a “legit second source” in the AI accelerator market. Bank of America analyst Vivek Arya raised the bank’s 2030 server CPU market projection to more than $170 billion from $125 billion and noted that AMD’s EPYC server CPUs sit at the center of many AI data center purchases that include accelerators.

The MI450 production ramp is scheduled to begin in the second half of 2026, so related revenue will arrive over several future quarters. AMD currently trades at a high forward earnings multiple. Factors that will affect the timing and size of revenue include supply availability, the maturity of AMD’s software stack for large AI models, and the pace at which customers deploy and expand capacity.

Nvidia’s AI ecosystem — including developer tools, model integrations and long‑standing customer relationships — remains more mature and more widely adopted. The agreements identify AMD as a supplier of accelerators alongside its existing server CPU business. The financial impact of the new deals will depend on when those deployments start and how quickly they scale.