Meta Eyes $20B Oracle Cloud Deal to Boost AI Power

Meta, the parent company of Facebook, is reportedly in advanced discussions with Oracle for a multi-year cloud computing agreement worth around $20 billion. The deal would provide Meta with additional computing capacity to accelerate the training and deployment of its AI models, complementing its existing cloud infrastructure.

This potential partnership highlights the growing demand among tech giants for faster, more reliable computing resources amid the AI race. Oracle, known for its integrated cloud technologies and flexible deployment models, has been increasingly securing multi-billion-dollar contracts, leveraging its cloud platform to serve leading AI companies.

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The talks come shortly after news that OpenAI signed a contract to purchase roughly $300 billion in computing power from Oracle over five years, marking one of the largest cloud agreements in history. Oracle’s strategy to partner with major tech firms, including Amazon, Alphabet, and Microsoft, has helped its cloud revenue grow more than sixteen-fold in recent quarters.

The enterprise software giant recently announced four new multi-billion-dollar contracts, reflecting the surge in demand for AI computing resources from both startups and established players. Analysts note that this trend signals an industry-wide shift, as companies race to secure the infrastructure necessary to maintain competitive advantages in AI development.

With booked revenue in its Oracle Cloud Infrastructure (OCI) division projected to surpass half a trillion dollars, Oracle is positioning itself as a central hub for large-scale AI computing. Industry observers suggest that more multi-billion-dollar deals are likely to be announced in the coming months, further cementing the company's role in powering next-generation AI technologies.