Oracle stock rises as company confirms Meta cloud deal

Oracle's stock experienced a significant boost on Thursday, climbing as much as 5% after the company announced a promising cloud-computing partnership with Meta, the parent company of Facebook. This collaboration is part of Oracle's strategy to expand its business in key sectors, particularly in artificial intelligence and cloud services. During the AI World conference held in Las Vegas, Clay Magouyrk, one of Oracle's co-CEOs, revealed that the company anticipates a remarkable increase in revenue from its AI-driven database and data platform, projecting earnings to reach $20 billion by the fiscal year 2030. This is a substantial rise from the $2.4 billion expected in fiscal 2025 and $3 billion in fiscal 2026. Magouyrk highlighted the growing demand for Oracle's services, stating that the company has secured $65 billion in new cloud infrastructure commitments within just 30 days this quarter. These contracts span across seven agreements with four different clients, underscoring the company's strong market position. Notably, he clarified that none of these customers are OpenAI, despite the ongoing discussions about their partnership. The deal with Meta is particularly significant, as it aligns with the broader trend of heightened investment by technology firms in AI infrastructure. Meta has indicated plans to spend between $66 billion and $72 billion on capital expenditures this year alone. Meanwhile, Oracle continues to enhance its cloud infrastructure offerings to compete with major players like Amazon and Google, even extending its database services beyond its own cloud. This strategic move comes on the heels of Oracle's previous commitment from OpenAI, which exceeded $300 billion in July, signaling a robust interest in AI technologies across the industry.