TLDR
- Oracle lands $65B in cloud deals, signaling strong AI market confidence.
- Meta inks major AI cloud pact, expanding Oracle’s enterprise reach.
- Oracle shares jump after revealing record AI infrastructure contracts.
- $20B Meta tie-up confirms Oracle’s rise in large-scale AI deployments.
- Oracle eyes $20B AI revenue by 2030 amid booming cloud demand.
Oracle Corporation shares surged 3.09% Thursday, closing at $313.00 after peaking at $316.73. The boost followed major announcements at its AI World conference. However, the stock later slipped 2.24% in after-hours trading, settling at $306.00.
Oracle revealed $65 billion in new cloud infrastructure commitments secured within the last 30 days. The contracts came from four clients, including Meta, and involved seven distinct agreements. These commitments signal growing demand for Oracle’s cloud services beyond just one major client.
The company deals exclude OpenAI, underlining broader market confidence in Oracle’s offerings. This diversification highlights Oracle’s expanding enterprise reach across the AI cloud sector. As a result, Oracle’s cloud infrastructure gains strategic importance in today’s competitive AI economy.
Meta partnership confirms Oracle’s growing AI infrastructure role
Meta, which runs Facebook and Instagram, signed a major agreement with Oracle for AI infrastructure services. This deal aligns with Meta’s broader capital expenditure plan of $66–$72 billion for this year. Oracle benefits by playing a critical role in Meta’s infrastructure expansion.
While Bloomberg reported a potential $20 billion scope in September, Oracle did not confirm the figure publicly. Still, the partnership confirms Oracle’s role as a key infrastructure provider in large-scale AI deployments. Meta’s inclusion signals major tech interest in Oracle’s scalable cloud capabilities.
Oracle emphasized the contracts are set for future fulfillment, not immediate deployment. This points to improving supply availability in later years, not 2025 or 2026. The company aims to meet long-term demand through better access to computing capacity and infrastructure.
Revenue forecasts show steep AI growth potential
Oracle projected a sharp rise in AI-powered database and platform revenue by fiscal 2030. The company expects to grow this segment from $2.4 billion in fiscal 2025 to $3 billion in 2026, reaching $20 billion in 2030. This forecast underlines confidence in the firm’s AI roadmap.
Oracle confirmed that AI infrastructure margins remain strong despite upfront costs in land, power, and equipment. Adjusted gross margins range from 30% to 40%, suggesting scalable profitability. This makes Oracle’s long-term AI strategy financially viable and operationally sound.
The company continues to offer its databases across multiple clouds, enhancing its reach beyond its own infrastructure. This approach broadens adoption and builds flexibility into its growth model. Oracle also competes directly with cloud providers such as Amazon and Google, thereby strengthening its position in enterprise AI.
