Oracle is in advanced negotiations with Meta over a potential multi-year cloud-computing agreement worth an estimated US$20 billion, according to people familiar with the discussions. If finalized, the deal would rank among the largest cloud infrastructure contracts in recent years, underscoring the soaring demand for computing power fueled by artificial intelligence (AI) and machine learning.
AI Boom Fuels Cloud Expansion
Meta—the parent company of Facebook, Instagram, and WhatsApp—has been rapidly scaling up its computing resources to support generative AI tools, recommendation engines, and immersive digital platforms. Partnering with Oracle would provide the company with expanded data center capacity while diversifying its cloud strategy beyond existing partnerships with Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
For Oracle, the agreement would mark a significant breakthrough in its bid to capture a larger share of the enterprise cloud market. Traditionally known for its databases, Oracle has been investing heavily in cloud infrastructure to position itself against hyperscale rivals.
A Strategic Partnership
Sources suggest the potential contract would include long-term commitments on both sides. Oracle would deliver tailored compute and storage solutions optimized for Meta’s massive AI workloads. Analysts note that training and running large-scale AI models require not only raw computational power but also scalable, energy-efficient infrastructure—an area where Oracle has been ramping up capabilities.
“This is a landmark opportunity for Oracle to demonstrate it can serve the largest and most demanding workloads in the world,” said one industry observer.
Shifting Cloud Dynamics
The talks come as big tech companies embrace multi-cloud strategies to spread risk, reduce reliance on single vendors, and secure capacity for surging AI development. With Meta already spending tens of billions annually on infrastructure, a $20 billion deal would further reshape competitive dynamics in the cloud industry.
Industry experts say such an agreement could also signal deeper collaboration between enterprise tech providers and consumer internet giants, reflecting how the AI race is blurring traditional industry boundaries.
Looking Ahead
Neither Oracle nor Meta has confirmed details of the negotiations, but insiders suggest an announcement could come in the coming months. If sealed, the partnership would mark a high-stakes bet on the future of AI—and the colossal computing power required to fuel it.
