Oracle is in talks with Meta Platforms for a cloud computing deal worth about $20 billion, in what could become one of the largest AI infrastructure agreements to date, a person familiar with the matter told Reuters on Friday.
If finalized, the multi-year deal would see Oracle provide Meta with computing power to train and deploy its fast-expanding artificial intelligence models. The arrangement would complement Meta’s existing partnerships with other cloud providers, reflecting the social media giant’s urgent push to secure faster and more reliable access to scarce computing resources.
Oracle has positioned itself as a key player in the AI infrastructure market by offering integrated cloud technologies and flexible deployment models. This positioning has enabled it to capture demand from some of the world’s most resource-hungry companies.
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The prospective Meta deal comes just a week after the Wall Street Journal reported that OpenAI signed a contract with Oracle to purchase $300 billion worth of computing power over five years — one of the largest cloud deals ever recorded.
In recent months, Oracle has also struck partnerships with Amazon, Alphabet’s Google, and Microsoft, allowing their customers to run Oracle Cloud Infrastructure (OCI) alongside native services. Revenue from these arrangements surged more than sixteenfold in the first quarter, underlining how deeply entrenched Oracle has become in the new AI supply chain.
The enterprise software giant has not slowed its momentum. Just last week, it announced four multi-billion-dollar cloud contracts and said it expects several more in the coming months. It further projected that booked revenue at its OCI business would surpass half a trillion dollars.
The AI Arms Race for Computing Power
The negotiations with Meta highlight a broader industry shift, where computing power has become the single most valuable commodity in the AI arms race. Companies from OpenAI to Elon Musk’s xAI are aggressively securing long-term contracts with cloud providers to lock in access to chips, servers, and data center space capable of handling next-generation models.
For Meta, which has been expanding its AI ambitions across its platforms — from Llama models to generative AI features in Instagram and WhatsApp — ensuring uninterrupted compute supply is critical. Delays in access could blunt its ability to compete with rivals like OpenAI, Google DeepMind, and Anthropic.
Big Tech’s Cloud Strategies Diverge
Meta’s interest in Oracle adds another dimension to the competitive landscape of cloud alliances. Unlike Google, Microsoft, and Amazon, Meta does not operate a commercial cloud platform, forcing it to rely on external vendors for infrastructure.
By contrast, OpenAI has leaned heavily on Microsoft’s Azure while also diversifying with Oracle. Anthropic, meanwhile, has centered its compute strategy on Amazon Web Services, while Google continues to prioritize DeepMind’s needs within its own ecosystem.
For Oracle, which has long trailed Amazon, Microsoft, and Google in the public cloud market, these AI-driven mega-contracts are redefining its position. Oracle is rapidly carving out a role that could make it indispensable in the next wave of AI innovation by becoming the cloud provider of choice for companies desperate for large-scale compute.
Some analysts believe that if the Meta deal materializes, it would cement Oracle’s transformation from a legacy software vendor into a central force in global AI infrastructure. It would also underscore the sheer scale of spending underway, with tens and even hundreds of billions of dollars now being committed to ensure that the companies building the most powerful AI models have the computing backbone to support them.
The pending talks also raise questions about sustainability. It is believed that the unprecedented demand for data centers — and the energy required to power them — is creating bottlenecks in supply chains and raising concerns about environmental impact. Still, the race shows no sign of slowing, as securing compute is now seen as existential for AI players.
With Meta, OpenAI, and others turning to Oracle, the company has suddenly emerged as the unexpected kingmaker in the most expensive technology race of the decade.
