Oracle in Talks With Meta on $20 Billion AI Cloud Deal

Core Viewpoint - Oracle Corp. is negotiating a cloud computing deal with Meta Platforms Inc. valued at approximately $20 billion, highlighting Oracle's growing role as a significant infrastructure provider in the cloud computing sector [1]. Group 1: Deal Details - The multiyear agreement would enable Oracle to supply Meta with computing power necessary for training and deploying artificial intelligence models, with the potential for the total commitment to increase and terms to change before finalization [1]. - This contract represents a continuation of Oracle's success in its cloud infrastructure business, following a recent surge in bookings that led to a record high stock price [2]. Group 2: Market Position - Oracle is positioning itself as a key player in AI computing capacity, competing with major cloud providers such as Amazon, Microsoft, and Google [3]. - The company's stock has seen significant growth, rising 85% this year, with a 4.1% increase to $308.66 at the close of trading on Friday [2]. Group 3: Customer Concentration Concerns - There are investor concerns regarding the reliance on a single customer, OpenAI, which has secured a substantial deal for 4.5 gigawatts of computing power from Oracle [4].