Oracle, Meta In Negotiations For $20 Billion AI Cloud Agreement: Report

Last Updated:September 20, 2025, 03:07 IST

Over recent months, Oracle has expanded its presence in the cloud services space by securing deals with several leading technology companies.

If finalised, the deal would see Meta using Oracle’s cloud infrastructure to train and deploy AI models (Reuters)

Oracle, the US-based cloud applications giant, is currently in talks with Mark Zuckerberg-led Meta Platforms over a potential $20 billion deal focused on AI cloud computing solutions, according to a report by Bloomberg News. If finalised, the multiyear agreement would see Meta using Oracle’s cloud infrastructure to train and deploy artificial intelligence models.

While the deal remains under negotiation, further details are still awaited, and the final value may fluctuate depending on the outcome, Bloomberg noted, citing sources close to the matter.

Such a collaboration underscores the growing importance of cloud computing and artificial intelligence in shaping modern business strategies and technological innovation. These technologies are rapidly becoming foundational elements for companies aiming to scale AI capabilities and meet rising computational demands.

Meta has declined to comment on the potential agreement, Bloomberg reported. Notably, in August, the publication also revealed that Oracle had been in discussions with Meta for additional cloud capacity, highlighting an ongoing engagement between the two tech giants.

Over recent months, Oracle has expanded its presence in the cloud services space by securing deals with several leading technology companies, including Microsoft and Google. “We have signed significant cloud contracts with the who’s who of AI, including OpenAI, xAI, Meta, NVIDIA, AMD, and many others," Oracle CEO Safra Catz said during the company’s first-quarter earnings call.

Earlier this month, Oracle announced plans to provide Microsoft-backed OpenAI with up to 4.5 gigawatts of cloud computing capacity over the next five years under a $300 billion agreement. Additionally, Oracle is reportedly working on a deal with ByteDance’s TikTok, which would help ensure the app’s continued operation in the US. The new TikTok cloud agreement is expected to close within the next 45 days.

As Oracle continues to aggressively pursue large-scale cloud partnerships, it is increasingly positioning itself as a major player in the AI computing space, directly competing with established cloud leaders such as Amazon Web Services, Microsoft Azure, and Google Cloud.

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