In a massive boost for its cloud business, Oracle is reportedly finalizing a $20 billion AI cloud deal with Meta, marking one of the largest infrastructure agreements in the industry.
Reuters and Bloomberg, reported that the multi-year deal will give Meta access to Oracle’s vast AI computing power, supporting the training and deployment of the social media giant’s artificial intelligence models. The news immediately sent Oracle shares up nearly 4%, signaling investor confidence in the company’s growing AI ambitions.
Oracle AI Cloud Deal Could Redefine the Market
This deal would solidify Oracle’s position as a leading force in the booming AI cloud market. It follows another staggering $300 billion multi-year deal with OpenAI, further proving Oracle’s strategic intent to compete head-to-head with Amazon AWS and Microsoft Azure.
Demand for AI infrastructure has surged as companies scramble to secure scarce GPU capacity to power massive language models and generative AI systems. Oracle Cloud Infrastructure (OCI) has responded by boosting capital expenditure by nearly 65% this fiscal year, committing around $35 billion to expand data centers, infrastructure, and hardware globally.
Technical Muscle Behind Oracle’s Expansion
The Meta deal would give the company access to Oracle’s advanced cloud clusters, packed with hundreds of thousands of NVIDIA GPUs. OCI also uses SHARP (Scalable Hierarchical Aggregation and Reduction Protocol), a technology designed to reduce data transfer overhead and accelerate performance for AI training and inference.
Such technical investments put Oracle in a strong position to deliver the massive computing scale required by Meta’s generative AI projects, ensuring faster model training and smoother deployment across billions of users.
A Cloud Market Power Shift
The reported negotiations indicate a notable shift in the cloud market. Meta, which traditionally relied on a mix of in-house infrastructure and Google Cloud, appears to be diversifying its cloud partnerships to secure more AI compute capacity.
With a record-breaking $455 billion backlog of future obligations, Oracle is locking in customers and securing growth well ahead of its rivals.