Oracle is in advanced talks with Meta Platforms for a cloud computing contract worth about $20 billion, according to a person familiar with the matter as reported by Reuters. The deal would give the Facebook parent access to additional computing power to train and deploy artificial intelligence (AI) models.
If finalized, the agreement would mark one of the largest cloud commitments in recent years and expand Meta’s roster of cloud providers. The company already uses multiple vendors to meet soaring demand for AI infrastructure.
Meta declined to comment, while Oracle did not immediately respond to requests for confirmation.
The reported talks come just days after the Wall Street Journal revealed OpenAI had signed a contract with Oracle worth $300 billion over five years—among the biggest cloud deals ever. Oracle has also announced four other multi-billion-dollar contracts this month. This just continues to show the fierce race among tech firms to secure computing capacity for AI.
Oracle Cloud Infrastructure (OCI) has been gaining traction through partnerships with Amazon, Google, and Microsoft. These deals let their cloud customers run OCI services alongside their own, boosting Oracle’s revenue sixteen-fold in the first quarter.
The potential Meta agreement pinpoints the growing importance of diversified cloud strategies. For Meta, ensuring reliable access to computing power is critical as it pushes forward with AI-driven products, including smart glasses, chatbots, and content moderation tools.
Oracle, meanwhile, has pitched its integrated cloud technologies and flexible deployment models as competitive advantages. The company has projected that booked revenue from its cloud unit could surpass half a trillion dollars in the coming years, fueled by the AI boom.
The discussions with Meta suggest that Oracle, long considered a smaller player in cloud compared with Amazon Web Services and Microsoft Azure, is carving out a stronger foothold in the most lucrative corner of the market.
