Oracle in Talks With Meta on $20 Billion AI Cloud Deal
Oracle offers more evidence that the company has become an important infrastructure provider and meets with Meta for a cloud computing agreement worth approximately $ 20 billion.
Within the scope of the multi -year agreement, Oracle would provide information processing power to the social media giant to train and distribute artificial intelligence models, according to people familiar with negotiations. People who want to be named because the discussions are special, the total commitment amount may increase and other agreements can still change before a final agreement.
The contract will contribute to a series of victories for Oracle’s cloud infrastructure business. Last week, the company reported that there was a huge increase in reservations that brought the stock price to the highest level of all time. Oracle had previously announced the cloud business with other companies that trained AI models, including Meta and Elon Musk.
Oracle shares rose by 4.1% on Friday in New York. The company’s share of cloud success increased by 85% this year.
Oracle, known for its database software, emerges as an important provider for AIM calculation capacity and competes against cloud leaders Amazon, Microsoft and Google.
Meta refused to comment. Oracle did not respond to the request for comments immediately.
In August, Bloomberg reported that Oracle had negotiated with Meta for additional cloud capacity.
Nevertheless, investors expressed their concerns about how much of Oracle’s reserved cloud agreements can be attributed to Openai, a single customer, the leading AI company. Earlier this year, Oracle won an agreement to provide an unprecedented 4.5 Gigawatt information processing power to AI company.
