admin Oracle is reportedly in advanced discussions with Meta Platforms Inc. for a multi-year cloud computing agreement valued at approximately $20 billion. This potential deal would provide Meta with additional computing capacity to train and deploy artificial intelligence (AI) models, complementing its existing cloud infrastructure. The negotiations underscore Meta’s strategic focus on enhancing its AI capabilities through increased access to computing power.
The proposed agreement follows Oracle’s recent $300 billion contract with OpenAI, marking one of the largest cloud computing deals in AI history. Additionally, Oracle has secured partnerships with Amazon, Alphabet, and Microsoft, enabling their cloud customers to run Oracle Cloud Infrastructure alongside native services. These collaborations have significantly boosted Oracle’s cloud revenue.
Oracle’s expansion into AI-focused cloud services aligns with a broader industry trend, as companies like OpenAI and xAI aggressively invest in computing capacity to advance in the AI race. Oracle anticipates signing several more multi-billion-dollar customers in the coming months, projecting its Oracle Cloud Infrastructure business to exceed half a trillion dollars in booked revenue.
Industry experts note that this deal, if finalized, could intensify competition among cloud providers while giving Meta a strategic edge in AI development. Furthermore, Oracle’s flexible deployment models and integrated cloud technologies make it a preferred choice for companies requiring scalable AI infrastructure.
Meta and Oracle have not publicly commented on the discussions. However, the market sees this potential agreement as a major signal of growing investments in AI technology, highlighting how critical computing power has become for tech giants racing to lead in artificial intelligence.
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