Oracle Corporation is reportedly in advanced discussions with Meta Platforms Inc. for a multi-year cloud computing agreement valued at approximately $20 billion. The potential deal underscores Meta’s strategic push to secure expanded computing capacity for training and deploying artificial intelligence (AI) models, as demand for high-performance infrastructure continues to surge across the tech industry.
According to sources familiar with the matter, Oracle would provide Meta with large-scale cloud infrastructure services through its Oracle Cloud Infrastructure (OCI) platform. The agreement, if finalized, would supplement Meta’s existing partnerships with other cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud. Both companies have declined to comment publicly on the negotiations, which remain subject to change in terms and scope.
The proposed contract would mark a significant milestone for Oracle’s cloud business, which has seen rapid growth amid rising demand for AI computing power. The company recently announced four multi-billion-dollar cloud deals and reported a sixteen-fold increase in revenue from partnerships with major tech firms in the first quarter of 2025. Oracle’s cloud strategy includes enabling customers to run OCI alongside native services from other providers, enhancing flexibility and scalability.
This development follows Oracle’s landmark $300 billion agreement with OpenAI to deliver 4.5 gigawatts of computing capacity over five years—one of the largest cloud contracts ever signed. Oracle’s aggressive expansion into AI infrastructure has positioned it as a formidable competitor to established cloud leaders, with projections indicating that OCI’s booked revenue could exceed $500 billion in the coming months.
For Meta, the deal aligns with its broader initiative to accelerate AI capabilities and optimize data center operations. The company is reportedly exploring the use of custom AI chips, such as its internally developed MTIA accelerator, to enhance inference workloads and reduce reliance on third-party hardware. The Oracle partnership may support these efforts by offering tailored infrastructure solutions.
If finalized, the Oracle-Meta agreement would represent a pivotal collaboration in the evolving landscape of AI and cloud computing, reinforcing the strategic importance of scalable infrastructure in driving innovation and competitive advantage.
