Oracle is reportedly negotiating a multibillion-dollar agreement with Meta, in what could become one of the largest AI cloud computing contracts to date.
According to sources familiar with the matter, discussions are centered on a deal valued at approximately $20 billion, highlighting the growing demand for specialized infrastructure to support artificial intelligence.
If finalized, the agreement would make Meta one of Oracle’s largest customers. Meta has been scaling its investments in AI as it pushes forward with generative AI models, content recommendation systems, and infrastructure for its platforms, including Facebook, Instagram, and WhatsApp.
Partnering with Oracle could give Meta access to the company’s high-performance cloud capabilities, which are increasingly being positioned as an alternative to Amazon Web Services, Microsoft Azure, and Google Cloud.
The deal would also mark a significant shift in Oracle’s positioning within the cloud ecosystem. Historically known for enterprise software and databases, Oracle has been aggressively expanding its AI and cloud offerings. A long-term, high-value contract with a major customer like Meta would strengthen its competitive standing in the AI race.
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For Meta, the move underscores its strategy of diversifying cloud partnerships to meet growing computational needs while avoiding over-reliance on a single provider.
With generative AI becoming central to both consumer and enterprise products, securing reliable computing capacity has become a critical priority for tech giants.
If completed, this $20 billion agreement would stand out not only for its size but also as an indicator of the capital intensity driving the next wave of AI development. It highlights how cloud infrastructure providers are emerging as key beneficiaries of the AI investment boom.