Oracle is currently engaged in high-level talks with Meta Platforms to negotiate a multi-year cloud computing agreement valued at approximately $20 billion. The proposed deal would see Oracle provide substantial computing power to Meta, supporting the training and deployment of its artificial intelligence models and further diversifying Meta’s existing cloud infrastructure strategy. This potential partnership reflects the rapid evolution of AI infrastructure across the tech industry. As AI development accelerates, major technology companies are aggressively securing large-scale computing resources. Meta, in particular, is intensifying its efforts to strengthen its AI capabilities—especially around its Llama series of large language models—by expanding its network of cloud providers. Oracle’s strategic shift is also drawing significant attention. Once primarily known as a database software leader, Oracle has rapidly emerged as a key player in AI-driven cloud infrastructure. Its cloud infrastructure (OCI) business reported a 55% year-over-year revenue increase, and the company recently secured a landmark $300 billion multi-year contract with OpenAI—highlighting its growing influence in the AI space. The news of the potential deal with Meta has already had a measurable impact on Oracle’s market performance. The company’s stock rose 4% in a single day, and its share price has surged over 80% year-to-date in 2025. Additionally, Oracle’s remaining performance obligations—a critical indicator of future revenue—jumped 359% year-over-year in the latest quarter, reaching $45.5 billion. While the negotiations are ongoing and the final value of the agreement may still change, the talks underscore the intensifying competition between traditional enterprise software firms and hyperscale cloud providers in the AI infrastructure arena. If finalized, the deal would mark a major milestone in Oracle’s transformation and solidify its role as a foundational partner in the AI ecosystem. For Meta, securing such a large-scale agreement would be a strategic move to ensure it maintains ample computing capacity amid the global AI race. Oracle plans to significantly expand its infrastructure investments, with capital expenditures expected to rise by 65% this year—reaching $35 billion—primarily to build new data centers and meet rising demand. Industry analysts are closely watching the developments. A successful agreement would not only validate Oracle’s cloud ambitions but also reshape the competitive dynamics in AI infrastructure, reinforcing the importance of strategic partnerships in powering the next generation of artificial intelligence.