Could Oracle Corporation (ORCL.US) be reaching a $20 billion AI cloud agreement following the acquisition of OpenAI?

Oracle Corporation (ORCL.US) is currently in negotiations with Meta (META.US) for a cloud computing partnership worth approximately $20 billion. This development further illustrates Oracle Corporation's position as a key infrastructure service provider in the industry. According to sources, in this multi-year agreement, Oracle Corporation will provide computing power for artificial intelligence (AI) model training and deployment for the social media giant. The sources indicate that the total amount committed by both parties may increase further before the final agreement is reached, and there is room for adjustments in other terms of the partnership. If the agreement is reached, it will be another significant victory for Oracle Corporation's cloud infrastructure business. Last week, Oracle Corporation announced a significant increase in its order volume, driving its stock price to a new all-time high. Previously, Oracle Corporation had disclosed cloud service partnerships with Meta and other AI model training companies, including xAI, a company owned by Musk. On Friday, in the US stock market, Oracle Corporation's stock price closed at $308.66, with a daily increase of 4.1%. Buoyed by the strong performance of its cloud business, the company's stock price has risen by 85% so far this year. While Oracle Corporation is known for its database software, it is now emerging as a key supplier in the AI computing power field, competing with industry leaders in cloud services such as Amazon.com, Inc. (AMZN.US), Microsoft Corporation (MSFT.US), and Alphabet Inc. Class C (GOOGL.US). Meta declined to comment on the matter, while Oracle Corporation did not immediately respond to requests for comments. Reports as early as August this year indicated that Oracle Corporation was in discussions with Meta to increase the supply of cloud service resources. However, investors remain concerned about one issue: what percentage of Oracle Corporation's cloud service orders come from the major AI company OpenAI as a single customer. Earlier this year, Oracle Corporation secured a partnership to provide 4.5 GW of computing resources to OpenAI, setting an industry precedent.