Oracle in Advanced Talks with Meta for $20B AI Cloud Deal

Oracle Corp. is negotiating a multiyear cloud infrastructure agreement with Meta Platforms Inc. worth at least $20 billion, according to people familiar with the matter. The deal WOULD provide computing resources for Meta's artificial intelligence development, supplementing its existing capabilities.

Oracle shares surged 4% to $308.66 following reports of the potential partnership. The stock has gained over 80% this year amid soaring demand for AI infrastructure, including a separate 4.5-gigawatt data center commitment to OpenAI that analysts estimate could generate $300 billion in revenue over five years.

The company's remaining performance obligations skyrocketed 359% year-over-year to $455 billion last quarter - a backlog four times larger than Google's. This explosive growth underscores Oracle's emergence as a critical infrastructure provider in the AI arms race.