Cloud Computing

Oracle and Meta discuss $20 billion AI cloud deal

Ken Metral

20 Sep 2025 — 2 min read

Credit: Oracle Corporation/Meta Platforms, Inc.

Oracle Corp. is in advanced discussions with Meta Platforms Inc. on a cloud computing agreement valued at about $20 billion, a move that would further cement Oracle’s role as a major infrastructure provider in the artificial intelligence boom.

According to people familiar with the talks, the multiyear deal would supply Meta with significant computing power to train and deploy AI models. The total commitment could grow, and certain terms are still under negotiation, the people said, requesting anonymity because the discussions remain private.

If finalized, the agreement would mark another milestone for Oracle’s cloud infrastructure business, which has been gaining momentum amid rising demand for AI computing. Just last week, the company reported a surge in bookings that lifted its shares to an all-time high. Oracle has previously confirmed partnerships with Meta and other AI players, including Elon Musk’s startup xAI.

Oracle’s Rise in AI Infrastructure

Long recognized for its dominance in database software, Oracle has been reinventing itself as a key provider of cloud-based computing capacity. Its strategy is paying off: the company is now directly competing with Amazon Web Services, Microsoft Azure, and Google Cloud in the high-stakes AI race.

That shift has resonated with investors. Oracle shares are up 84% this year, driven largely by optimism around its AI-focused cloud offerings.

Still, questions linger about concentration risk. Analysts and investors have expressed concern that a significant portion of Oracle’s cloud growth may depend heavily on a small number of customers. OpenAI, for example, signed a landmark agreement earlier this year to secure 4.5 gigawatts of computing power from Oracle—an unprecedented scale for the industry.

Meta’s Expanding AI Ambitions

Meta, the parent of Facebook, Instagram, and WhatsApp, has been aggressively investing in artificial intelligence, particularly in large-scale language models and generative AI applications. The potential partnership with Oracle suggests Meta is seeking to diversify its cloud suppliers while securing the resources needed to sustain its AI ambitions.

Neither company has publicly commented on the current talks. Meta declined to provide a statement, while Oracle did not immediately respond to requests for comment.

Reports of Oracle negotiating with Meta over cloud capacity first surfaced in August via Bloomberg. The latest developments suggest those discussions have advanced toward a deal that could reshape the competitive dynamics in the AI infrastructure market.

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