Oracle in Talks with Meta on $20 Billion AI Cloud Deal

Oracle is reportedly negotiating a multi-year cloud computing deal with Meta worth about $20 billion, highlighting Meta’s push to secure greater AI computing power. According to sources cited by Reuters, Oracle would provide Meta with large-scale computing capacity for training and deploying artificial intelligence models.

The deal would make Oracle one of Meta’s key cloud partners, supplementing its existing agreements with Amazon Web Services, Microsoft Azure, and Google Cloud. Neither Meta nor Oracle has commented publicly on the potential agreement.

The talks come shortly after reports that OpenAI signed a massive $300 billion deal with Oracle to secure cloud capacity over the next five years, making it one of the largest contracts in the cloud computing industry. Oracle has positioned itself as a critical player in the AI infrastructure race by offering scalable, integrated cloud solutions.

Oracle’s cloud division, Oracle Cloud Infrastructure (OCI), has seen explosive growth, with revenue from partnerships with Amazon, Alphabet, and Microsoft rising more than sixteen-fold in the first quarter. These collaborations allow cloud customers to run OCI services alongside native platforms, boosting Oracle’s competitiveness in the cloud market.

Just last week, Oracle revealed it had secured four multi-billion-dollar contracts, underscoring the surge in demand for AI computing power as companies like OpenAI and Elon Musk’s xAI race to dominate the next wave of artificial intelligence. The company also said it expects to sign more major contracts soon, projecting booked OCI revenue could exceed $500 billion in the coming months.

If finalized, the Meta deal would reinforce Oracle’s growing role in AI infrastructure and signal Meta’s determination to accelerate its AI capabilities to stay ahead in the competitive technology landscape.