According to multiple reports, including Bloomberg and Reuters, Oracle Corp. (ORCL) is in advanced talks with Meta Platforms (META) for a multi-year cloud deal worth about $20 billion. The agreement would give Meta access to Oracle’s cloud power to train and run large AI models. The terms are not yet final and may still change, but the size signals how quickly Oracle’s cloud unit is drawing big clients.
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Shares of Oracle rose 4% on Friday to $308.66, with the stock gaining 85% year-to-date as demand for its cloud unit helped drive bookings to new records. No official confirmation has been given by either side of the deal.
A Growing Role in AI Infrastructure
The potential partnership would add to Oracle’s recent streak of contract wins. Earlier this year, the company signed with OpenAI for $300 billion in cloud services, one of the largest agreements ever in the sector. Oracle has also reported new business with xAI, the AI company run by Elon Musk.
Meta is seeking more cloud supply to support its Llama models and expand AI features across Facebook, Instagram, and WhatsApp. By adding Oracle to its mix of cloud providers, Meta would reduce reliance on Microsoft Azure (MSFT) and other existing partners.
At the same time, Oracle has been positioning its Oracle Cloud Infrastructure as a cheaper and faster option compared to Amazon (AMZN) and Alphabet’s (GOOG) (GOOGL) Google Cloud. The company has also made its system easier to pair with these larger platforms, which has helped boost adoption.
Market Impact
For Oracle, the value of these contracts is reflected in booked revenue. While some investors worry about heavy reliance on a small set of clients, the growing list of multi-billion-dollar deals points to steady demand for high-speed computing.
If the Meta deal closes, Oracle would cement its role as one of the key players providing infrastructure for AI projects. As the race for cloud power continues, the company is moving into direct competition with the long-time leaders of the industry.
Is Oracle a Good Stock to Buy?
On the Street, Oracle has the backing of the analysts with a Strong Buy consensus rating. The average ORCL stock price target is $340.75, implying a 10.40% upside from the current price.
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