Meta mulls integrating Oracle for AI cloud computing in a potential $20 billion agreement, according to reports.
Oracle, the American multinational computer technology corporation, is making waves in the tech industry with its recent potential deals with Meta Platforms and Microsoft-backed OpenAI.
In a significant move, Oracle is part of a consortium aiming to keep ByteDance's TikTok operating in the U.S. under a possible framework deal between China and the U.S. The closure of this deal is expected within the next 45 days. As part of the new agreement, Oracle is expected to have a cloud deal with TikTok.
Meanwhile, Oracle is reportedly considering a multiyear deal worth approximately $20B with Meta Platforms for training and deploying artificial intelligence models using Oracle's cloud services. If finalized, this deal could be one of the largest cloud deals in history, with Meta Platforms committing a significant financial sum to Oracle.
Oracle has also agreed to provide Microsoft-backed OpenAI with up to 4.5 gigawatts of capacity over the next five years. The potential capacity from Oracle for OpenAI is worth up to $300B, making it a significant partnership in the rapidly evolving field of artificial intelligence.
Oracle's CEO, Safra Catz, confirmed these developments during the company's first quarter earnings call. The company has also signed cloud contracts with several AI companies, including OpenAI, Meta, NVIDIA, and AMD.
The potential deal between Meta and Oracle is still in the discussion phase and may increase or change before being finalized, according to a report. However, if it does go ahead, it would involve the use of Oracle's cloud services for AI models, potentially boosting Oracle's position in the AI sector.
Oracle shares climbed 4% by the time markets closed on Friday, reflecting investor confidence in the company's strategic moves. The current CEO of Oracle is Safra Catz. She has been CEO since September 2019, after previously serving as co-CEO alongside Mark Hurd.
As these potential deals unfold, Oracle continues to cement its position as a key player in the cloud services and artificial intelligence industries. With its significant capacity offerings and strategic partnerships, Oracle is poised to make a significant impact in the tech landscape.
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