Cloud services provider Oracle is in talks with the owner of Facebook and Instagram - Meta Platforms - to sign a cloud contract worth about $20 billion, Bloomberg reports. This confirms the company's growing role as a major infrastructure provider, the agency notes. Oracle's shares rose by 4% on Friday.

Details

As part of a multi-year agreement, Oracle will provide Facebook owner Meta Platforms with computing power to train and deploy artificial intelligence models in addition to its existing vendors, sources tell Bloomberg and Reuters. The deal is tentatively valued at $20 billion, but could increase. The terms of the contract may also change before a final agreement is signed, Bloomberg's sources said.

Meta declined to comment to the agency, and Oracle did not respond to a request for comment.

In trading on Friday, Oracle shares were up 3%, and after the Bloomberg report, they accelerated their growth, eventually adding 4.1% for the day and reaching $308.66. The stock strengthened another 0.7% in the postmarket. Since the beginning of the year, the company's securities have added 85% in value. Meta Platforms shares ended Friday trading down 0.2% to $778.38. Relative to the beginning of January, they grew by 33%.

Context

This contract will be a new achievement for Oracle's cloud infrastructure division, Bloomberg notes. Last week, the company reported a sharp rise in its order backlog, from $138 billion at the end of the previous quarter to $455 billion as of the end of August 2025. Oracle has contracts with several large companies, including, according to The Wall Street Journal, OpenAI - for 4.5 gigawatts of capacity for five years and $300 billion. Oracle has two other artificial intelligence customers, but their names were not disclosed. According to analysts TD Cowen and Melius Research, it could be partners such as Elon Musk's AI startup xAI and Meta Platforms, MarketWatch wrote on September 10.

Investors have expressed concern about Oracle's high dependence on a single large customer. Moody's rating agency this week warned of risks for Oracle amid the rapid growth of its AI business, including a large-scale contract worth $300 billion. But the agency did not change the software giant's rating. The last time Moody's revised Oracle's rating was in July. Then the agency lowered the outlook on the company's credit rating from "stable" to "negative", while confirming the Baa2 rating - the lower boundary of the investment level.

Despite the threat of rising debt and negative cash flow, Oracle's big deal was the driver that sent the stock price sharply higher: it rose to a record high of $328.3 at the close following the release of its quarterly report on Sept. 10.

According to MarketWatch, of the 43 analysts tracking the cloud services provider's stock, 30 of them recommend buying the securities, while the other 13 recommend holding. There is no advice to sell. The Wall Street consensus target price is $336.5 per share, up 9% from the current value.

This article was AI-translated and verified by a human editor

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