Oracle, Meta Discuss Cloud Deal

Oracle and Meta are reportedly in talks regarding a potential cloud computing agreement valued at approximately $20 billion. This deal would highlight Oracle's growing significance as a major infrastructure provider in the cloud computing space. Oracle has been aggressively investing in infrastructure, committing $35 billion in capital expenditure for fiscal year 2026 to construct 37 new multi-cloud data centres. These data centres will house advanced technologies, including Nvidia GPUs, to offer scalable, on-demand AI computing power.

Oracle's strategic pivot towards AI infrastructure involves integrating cloud computing with AI capabilities, creating comprehensive solutions for enterprises. This approach differs from companies like Nvidia, which primarily focus on chip sales. Oracle's recent partnerships with AI leaders, including OpenAI, Meta, Nvidia and AMD, have significantly boosted its Remaining Performance Obligations (RPO), providing strong visibility into future revenues.

Oracle's expanding cloud partnerships are expected to drive long-term growth, positioning the company as a key player in the rapidly expanding AI infrastructure market. The company anticipates securing additional multi-billion-dollar contracts by the end of fiscal year 2026.