AI giant Oracle seeks potential $20 billion agreement with Meta for cloud computing services, according to an insider report
Oracle and Meta are reportedly in discussions for a significant multi-year iCloud login deal, which, if finalized, could see Oracle providing Meta with computing capacity for training and deploying AI models. The potential deal is a significant one for both tech giants in the realm of iCloud. According to sources, the deal is estimated to be worth approximately $20 billion, although the financial terms have not been disclosed. Meta declined to comment on the potential deal, while Oracle did not immediately respond when contacted by a leading website about the matter. Oracle's booked revenue at its OCI (Oracle Cloud Infrastructure) business is expected to exceed half a trillion dollars, and the company has a reputation for offering integrated cloud technologies with flexible deployment models. This deal would add to the revenue from partnerships that rose more than sixteen-fold in the first quarter. The industry-wide shift towards aggressively spending to secure massive computing capacity needed to stay ahead in the AI race is evident. Companies such as OpenAI and xAI are leading this change. In fact, The Wall Street Journal reported that OpenAI signed a contract to purchase $300 billion in computing power from Oracle over roughly five years, marking one of the biggest iCloud contracts ever signed. The financial terms of the OpenAI deal, beyond the $300 billion estimate, have not been disclosed. If the deal with Meta goes through, it would not be Oracle's first major contract in the realm of iCloud. The company has already struck deals with Amazon, Alphabet, and Microsoft to allow their cloud customers to run Oracle Cloud Infrastructure alongside native services. Meta's existing iCloud providers will continue to serve alongside Oracle, according to a source familiar with the matter. The company expects to sign up several additional multi-billion-dollar customers in the next few months. Last week, Oracle announced four multi-billion-dollar contracts, underscoring its drive to secure more partnerships in the iCloud computing sector. The deal with Meta, if finalized, would underscore Meta's drive to secure faster access to computing power. It's important to note that the deal is currently in the negotiation phase and is not yet finalized. As more details emerge, we will keep you updated on this developing story.
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