Meta is in talks to sign a multi-year cloud deal with Oracle worth about $20 billion, Reuters reports.

The contract would be used to augment Meta's growing AI training and inference needs.

Meta has long built its own data center infrastructure, and is currently developing a 1GW data center campus, followed by an enormous 5GW site. The company forecasts 2025 capex at between $66bn and $72bn and expects this to ramp up "significantly" in 2026.

But the company has also been a significant wholesale leaser, as well as a cloud customer.

In 2021, Meta said that it would expand its partnership with Amazon Web Services to use the platform for acquisitions as well as AI R&D.

This August, the company reportedly signed a $10bn deal with Google Cloud, covering a six-year period.

Meta CEO Mark Zuckerberg has pledged to invest "hundreds of billions of dollars into compute" for the company's effort to "build superintelligence."

Oracle, meanwhile, has won a number of high-profile cloud contracts as one of the biggest beneficiaries of the AI boom. Notably, earlier this month, it was reported that OpenAI planned to spend approximately $300 billion on Oracle services over five years - likely the largest cloud contract in history.

The company also handles TikTok's US cloud services (and is trying to buy the company), alongside Temu and xAI deals.