Oracle confirms $20 billion cloud deal with Meta amid AI growth

Oracle announced a significant cloud infrastructure deal with Meta, contributing to a strong outlook for its core businesses. Oracle CEO Clay Magouyrk revealed that in the current quarter, the company secured $65 billion in new cloud infrastructure commitments from multiple customers, including Meta, but not OpenAI. Meta has been heavily investing in AI-related infrastructure, with this $20 billion deal marking a crucial partnership for Oracle. The company forecasts AI-powered database and data platform revenues to reach $20 billion by fiscal 2030, a substantial increase from $2.4 billion in fiscal 2025. Oracle has expanded its cloud infrastructure to rival major players like Amazon and Google and has also made its database available on clouds outside its own. AI infrastructure margins are expected to be between 30% and 40% after accounting for operational costs. This deal underlines Oracle’s growing role in the AI and cloud computing market, reinforcing its position as a key infrastructure provider.