Oracle Shares Jump as Company Confirms Cloud Deal with Meta, Targets $20bn in AI Database Revenue by 2030

Oracle’s stock closed 3% higher on Thursday after the company confirmed a major cloud-computing deal with Meta and outlined ambitious growth targets for its artificial intelligence-driven database and data platform business, projecting $20 billion in revenue by fiscal 2030.

The announcement, made at Oracle’s AI World conference in Las Vegas, underscored how the 47-year-old enterprise software giant is rapidly reinventing itself to meet surging global demand for AI infrastructure. Oracle executives said the company expects AI-related database revenue to grow nearly tenfold from $2.4 billion in fiscal 2025 to $20 billion by the end of the decade, marking one of the most aggressive long-term projections in the industry.

Clay Magouyrk, one of Oracle’s two newly appointed CEOs, said during the event that the company’s cloud pipeline is expanding faster than expected as global companies accelerate their AI investments.

“You see the change in these numbers that it’s a little bit easier for us to find supply, not this year or next year, but in subsequent years,” Magouyrk told analysts. “So as we’re able to find that supply, customers contract for it, we see immense demand, and then we go about delivering that to customers.”

He revealed that in just 30 days during the current quarter, Oracle contracted $65 billion in new cloud infrastructure commitments.

“It was across seven different contracts from four different customers,” Magouyrk said. “None of those customers are OpenAI. I know some people are questioning sometimes, ‘Hey, is it just OpenAI?’ The reality is, we think OpenAI is a great customer, but we have many customers.”

Among those customers, he confirmed, is Meta — the parent company of Facebook and Instagram — which has signed a deal with Oracle as part of its ongoing push to build out AI data centers and computational infrastructure. Bloomberg had earlier reported that Oracle and Meta were in discussions over a potential $20 billion partnership.

The deal with Meta marks a significant win for Oracle in the increasingly competitive AI infrastructure market, where it faces off against tech titans such as Amazon Web Services, Microsoft Azure, and Google Cloud. Each of these companies has been racing to expand capacity for AI workloads amid soaring global demand for graphics processing units (GPUs), data center space, and energy supply.

Meta, for its part, has been ramping up investment in its AI ambitions. The social media giant said in July that it expects to spend between $66 billion and $72 billion in capital expenditures this year, primarily to fund its expanding AI and metaverse initiatives. That figure underscores the unprecedented scale of spending among Big Tech firms as they rush to secure computing power for large-scale AI model training and deployment.

Oracle’s partnership with Meta follows another major win earlier this year, when OpenAI committed more than $300 billion to Oracle Cloud Infrastructure (OCI) in July. That deal positioned Oracle as a key supplier to the artificial intelligence research company whose ChatGPT models have helped trigger the current AI investment wave.

Magouyrk emphasized that Oracle’s growth in AI infrastructure is being built on sustainable financial terms rather than a pursuit of headline-grabbing contracts.

“I’ve read a lot of stories that are speculating that Oracle is chasing revenue for revenue’s sake, but let’s be crystal clear,” said Doug Kehring, Oracle’s principal financial officer. “We only pursue opportunities where we have a clear line of sight to attractive market margins that reward us for intellectual property and the activity we bring to customers.”

According to the company, AI infrastructure carries an adjusted gross margin of 30% to 40% after factoring in the costs of land, data centers, power, and computing equipment. Earlier this month, The Information reported that Oracle achieved a 14% gross margin on renting out Nvidia AI chips in the August quarter, suggesting that profitability is improving as scale increases.

Oracle’s approach of blending high-performance infrastructure with integrated database and analytics capabilities has started to distinguish it from competitors. Unlike Amazon or Google, Oracle is expanding its multi-cloud strategy by making its flagship database software available on other clouds, including Microsoft Azure and Amazon Web Services. The move allows customers to deploy AI workloads across different environments, improving flexibility and reducing vendor lock-in.

As Oracle deepens its role in the AI supply chain, the company’s executives also provided an ambitious financial outlook for the coming years. After market close on Thursday, Oracle said it now targets $21 in adjusted earnings per share on $225 billion in revenue for fiscal 2030 — representing a compound annual growth rate of 31%. Analysts polled by LSEG had projected significantly lower estimates of $18.92 per share on $198.39 billion in revenue.

The company’s bullish guidance initially boosted investor sentiment, though shares slipped 2% in after-hours trading as some analysts questioned the long-term feasibility of sustaining such high growth rates in a capital-intensive industry. Still, Oracle’s near-term stock performance reflects growing confidence among investors that the company’s cloud transformation is gaining real traction.

Over the past three years, Oracle has poured billions into expanding its global network of data centers to support AI workloads. The company’s executives said that as supply chain bottlenecks around GPUs and power infrastructure begin to ease, Oracle will be able to accelerate delivery timelines and meet pent-up demand from enterprise clients.

Oracle’s backlog of contracted commitments is believed to provide a strong foundation for long-term revenue visibility. However, the broader context for Oracle’s momentum lies in the global AI boom that has redrawn the map of corporate investment priorities.

Companies across sectors — from manufacturing and finance to healthcare and entertainment — are racing to deploy AI models, analyze large datasets, and automate complex decision-making processes. That surge in AI adoption has transformed cloud infrastructure into one of the most sought-after assets in the technology world, driving record spending and competition among providers.