Oracle is negotiating a multi-year cloud computing contract with Meta worth about $20 billion, a source told Reuters on Friday, highlighting the social media giant’s urgent push to secure computing capacity for AI development.
Under the potential deal, Oracle would provide infrastructure for training and deploying AI models, supplementing Meta’s existing cloud partnerships. Neither company commented on the report.
The talks come just days after news that OpenAI signed a landmark agreement to buy $300 billion worth of computing power from Oracle over five years—one of the largest cloud deals ever recorded.
Oracle, once known primarily for enterprise software, has rapidly repositioned itself as a heavyweight in cloud infrastructure through Oracle Cloud Infrastructure (OCI). It has partnered with Amazon, Google, and Microsoft to allow their customers to run Oracle workloads alongside native services. Revenue from these tie-ups surged more than 16x in Q1.
In recent weeks, Oracle has announced four additional multi-billion-dollar contracts as AI firms such as OpenAI, Musk’s xAI, and now Meta aggressively lock in long-term capacity. Oracle said it expects to sign more mega-customers in the coming months, projecting over half a trillion dollars in booked OCI revenue.
If finalized, the Meta deal would further cement Oracle as a critical player in the AI infrastructure race, rivaling traditional hyperscalers and underscoring just how central cloud power has become in the battle for AI dominance.