Oracle is currently engaged in high-level negotiations with the Meta platform to discuss a multi-year cloud computing agreement valued at around $20 billion. This agreement would enable Oracle to provide Meta with significant computing power to support the training and deployment of its artificial intelligence models, further supplementing Meta's existing cloud infrastructure investments.

Human-Machine Collaboration

Image source note: The image was generated by AI, and the image licensing service provider is Midjourney

This potential partnership marks the rapid changes in artificial intelligence infrastructure within the technology industry. As artificial intelligence development accelerates, tech giants are racing to secure large-scale computing resources. Meta has been particularly active in expanding its artificial intelligence capabilities, especially its Llama large language model, aiming to diversify its choices among cloud service providers.

Oracle's strategic shift is also noteworthy. Once seen as a leader in database software, Oracle has now rapidly emerged as an important player in artificial intelligence cloud infrastructure. Recently, Oracle's cloud infrastructure (OCI) business achieved a 55% revenue growth, and it has just signed a multi-year contract worth $30 billion with OpenAI, which also demonstrates its strong strength in the artificial intelligence field.

Notably, this news has driven Oracle's stock to rise 4% in a single day and has caused its stock price to increase by more than 80% for 2025. In addition, Oracle's remaining performance commitments (a key indicator of future revenue) have increased significantly by 359% year-over-year in the latest quarter, reaching $455 billion.

Currently, the negotiations between Oracle and Meta have not been finalized, and the total value of the agreement may change before signing. Oracle and Meta have not yet made official comments on this news. This negotiation not only highlights the dynamic market conditions in the cloud computing industry but also shows the intensifying competition between traditional enterprise software companies and hyperscale cloud service providers in the field of artificial intelligence infrastructure.

To meet the growing demand, Oracle is increasing its investment plans, expecting capital expenditures to increase by 65% this year, reaching $3.5 billion, mainly for the construction of new data centers.

Industry observers are closely watching: if the agreement is ultimately reached, Oracle will further solidify its position as an infrastructure partner in the field of artificial intelligence. For Meta, this is also an important strategy to ensure it has sufficient computing power in the global artificial intelligence competition.

Key Points:

🌟 Oracle is negotiating a cloud computing agreement worth $2 billion with Meta, aimed at enhancing Meta's AI capabilities.

📈 Oracle's cloud infrastructure business achieved a 55% revenue growth, and its stock price and performance commitments have significantly increased.

🏗️ Oracle plans to increase its investments in the future, building new data centers to meet market demand.