Oracle and Meta are preparing to sign a multi-year agreement worth $20 billion. Under this deal, Meta will use Oracle’s cloud services to develop its artificial intelligence (AI) projects.
The main reason behind this major agreement is Meta’s enormous demand for computing power. Training AI models — such as those used to create programs like ChatGPT — requires processing massive amounts of data, a task beyond the capabilities of ordinary computers. Oracle will provide Meta with the powerful servers and technical infrastructure needed for this process via the cloud. Instead of building its own servers, Meta will rely on Oracle’s services.
This news comes just a week after reports that OpenAI had signed a five-year, $300 billion cloud service deal with Oracle. Together, these developments highlight Oracle’s emergence as a key player in the AI industry.
Oracle is also collaborating with other tech giants, including Amazon, Alphabet (Google), and Microsoft. Thanks to these partnerships, Oracle’s revenue grew more than sixteenfold in the last quarter. The company says that with the rapid progress of AI, its revenues could soon surpass half a trillion dollars — further strengthening Oracle’s position in the technology world.
