Oracle in Talks for $20 Billion AI Cloud Deal with Meta
Oracle is reportedly in advanced discussions with Meta to establish a multi-year cloud computing agreement worth approximately $20 billion. A source familiar with the matter shared this development, highlighting Meta’s growing need for faster and more robust AI infrastructure.
If finalised, the deal would see Oracle providing Meta with cloud computing power to support both the training and deployment of AI models. Meta already works with other cloud providers, but this new partnership suggests it is looking to expand its capacity significantly.
While Meta declined to comment, Oracle has yet to respond to inquiries regarding the deal.
Oracle Expands Presence in AI Cloud Sector
Oracle has emerged as a major player in the competitive AI cloud computing space. It offers integrated cloud solutions and flexible deployment models, making it attractive to companies with large-scale AI needs.
This potential deal with Meta comes shortly after Oracle reportedly secured a massive $300 billion agreement with OpenAI for cloud computing services over five years. That contract was described as one of the largest of its kind.
Oracle has also collaborated with cloud giants such as Amazon, Google’s parent company Alphabet, and Microsoft. These partnerships allow clients to run Oracle Cloud Infrastructure (OCI) in parallel with each provider’s native services. According to Oracle, revenue from such collaborations surged more than sixteen-fold in the first quarter of this year.
AI Spending Drives Cloud Infrastructure Demand
Oracle recently announced four multi-billion-dollar cloud contracts, as companies across the tech industry rush to secure access to advanced computing resources. Firms like OpenAI and Elon Musk’s xAI are leading the charge in this AI investment wave.
The enterprise software firm expects to sign more multi-billion-dollar agreements in the near future. Oracle also projected that booked revenue from its cloud division, OCI, would eventually exceed $500 billion.
with inputs from Reuters
