Oracle Eyes Big AI Cloud Deal with Meta
Kevin Abbaszadeh
Technology Editor
Oracle is in advanced talks with Meta over a cloud computing deal that could be worth around $20 billion. If signed, the agreement would be one of the largest in the AI infrastructure space, giving Oracle a significant boost in its push to reinvent itself as a major cloud provider while supplying Meta with the computing power it needs to keep training next-generation AI systems.
The rumored deal comes shortly after Oracle struck a record-breaking partnership with OpenAI, reportedly valued in the hundreds of billions, to provide data center capacity and processing power. Together, these moves signal a bold shift for Oracle, which has long carried the reputation of being a slower, more traditional player compared to Amazon, Microsoft, and Google.
For Meta, the attraction is obvious. Building and maintaining its own global network of data centers requires massive upfront capital, as well as ongoing costs for electricity, cooling, and hardware. Leasing space from Oracle would let Meta scale its AI efforts more quickly without waiting for its own infrastructure to catch up. It also helps Meta hedge against supply shortages, especially in GPUs, which remain scarce as demand surges across the industry.
For Oracle, landing Meta would mean locking in steady revenue from one of the world’s most aggressive AI investors. It would also give the company bragging rights as the backbone of multiple high-profile AI efforts, elevating its brand and putting pressure on rivals. A deal of this size would show that Oracle is not just chasing the cloud race but reshaping it.
Still, the risks are substantial. Building out capacity to meet a $20 billion contract will require Oracle to sink huge amounts of money into data centers, land, and equipment. If Meta slows its AI rollout, pivots strategy, or develops more of its own infrastructure, Oracle could be left with costly excess resources. Meta also has a long history of spreading its business across multiple cloud providers, including Google and Amazon, to avoid dependence on any single partner.
The broader industry implications are just as important. With Oracle, Amazon, and Microsoft controlling most of the AI infrastructure, smaller firms may find themselves squeezed. As more of the world’s AI development depends on a handful of massive providers, pricing power and access could become concentrated in ways that limit innovation and competition.
If finalized, the Oracle–Meta agreement would be a near-term win for both sides: Meta gains instant scale, and Oracle gains legitimacy in the cloud market. But like most mega-deals in tech, the long-term payoff depends on whether the bet lines up with the actual trajectory of AI demand.
Contact Kevin at kevin.abbaszadeh@student.shu.edu