Oracle in Talks for Colossal $20 Billion AI Deal with Meta, Shaking Up the Cloud Wars
KATHMANDU, September 22, 2025 – In a move that could dramatically reshape the cloud computing landscape, Oracle is reportedly in advanced negotiations for a staggering $20 billion deal to provide AI cloud infrastructure to Meta. A source familiar with the matter confirmed the talks, which, if successful, would represent one of the largest cloud computing contracts in history and a monumental victory for Oracle in its fight against industry giants like Amazon and Microsoft.
This potential partnership underscores the colossal computational power required to fuel the generative AI arms race, as Meta seeks to build out the infrastructure needed for its next-generation Llama models and AI-powered features across Facebook, Instagram, and WhatsApp. For Oracle, a legacy tech titan aggressively pivoting to the cloud, securing Meta as a flagship AI client would be a game-changing validation of its strategy.
Why Meta Needs Billions in Cloud Power
Meta’s ambition is to build Artificial General Intelligence (AGI) and integrate AI deeply into its products, from smart assistants in Ray-Ban glasses to AI agents across its social platforms. Training and running these massive AI models require an astronomical amount of computing power, specifically clusters of high-performance GPUs.
While Meta is investing heavily in building its own data centers, the sheer scale and speed required to compete with rivals like Google and OpenAI mean it cannot rely solely on its own infrastructure. Partnering with a cloud provider allows Meta to rapidly scale its capabilities. The rumored $20 billion figure gives a sense of the sheer magnitude of resources being poured into the AI race by Big Tech.
A Coup for Oracle in the Cloud Wars
For years, the cloud market has been dominated by the “big three”: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Oracle has been a distant but persistent competitor, focusing on enterprise clients and high-performance computing.
Landing a deal of this magnitude with Meta would be a massive coup for Oracle and its founder, Larry Ellison. It would instantly elevate Oracle’s status as a top-tier provider for AI workloads, proving its infrastructure can handle the most demanding tasks on the planet. This would not only bring in immense revenue but also serve as a powerful marketing tool to attract other major AI companies.
Analysts suggest Meta may be looking to diversify its cloud partners beyond the traditional leaders, some of whom (like Google and Microsoft) are direct competitors in the AI space. Oracle’s competitive pricing and specialized “OCI Supercluster” architecture may be key factors in its favor.
What This Means for the Broader Tech World
For the tech community in Nepal and globally, this potential deal is more than just a corporate headline. It’s a clear indicator of where the industry’s resources are flowing. The massive investments at the top of the tech food chain will accelerate the development of the AI tools and services that will eventually become part of our daily lives.
If the deal is finalized, it will not only inject new intensity into the cloud wars but also significantly bolster Meta’s ability to innovate in the AI space. It’s a bold bet by both companies, signaling a major realignment of power in the infrastructure that will run the next generation of technology.
