Oracle Corp. is negotiating a multiyear cloud computing agreement with Meta Platforms Inc. that could be worth around $20 billion, a move that would underscore Oracle’s rapid rise as a major supplier of infrastructure for artificial intelligence workloads.
According to people familiar with the matter, Oracle would provide Meta with the computing power needed to train and deploy large-scale AI models. While the total dollar amount could increase, some elements of the proposed deal remain fluid, these people said, requesting anonymity because the discussions are private.
If finalized, the contract would add to a growing list of wins for Oracle’s cloud infrastructure division. The company, historically best known for its database software, has pivoted aggressively into cloud services and is competing head-on with giants such as Amazon Web Services, Microsoft Azure and Google Cloud for AI-related contracts.
Oracle shares gained 4.1% to close at $308.66 Friday in New York, hitting another record high. The stock, which has surged about 85% this year on the back of blockbuster cloud bookings, added another 0.37% in after-hours trading.
The deal also illustrates how Meta, parent of Facebook and Instagram, is ramping up spending to secure computing resources for its next wave of AI-powered services. In August, Bloomberg reported that Oracle and Meta were already in discussions for additional cloud capacity, signaling that the two companies have been expanding their relationship.
Oracle has publicly disclosed some cloud contracts with Meta as well as with other major players training AI models, including Elon Musk’s xAI. Earlier this year, the company landed an unprecedented agreement to supply OpenAI with 4.5 gigawatts of computing capacity — a scale never before seen in the industry.
Investors, however, have raised questions about how much of Oracle’s surge in cloud bookings depends on a small number of mega-customers. While Meta and Oracle declined to comment on the current negotiations, the talks highlight how the AI boom is reshaping the competitive landscape in cloud computing and potentially creating new revenue streams for legacy tech firms like Oracle.
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