Oracle is negotiating a multi-year agreement to supply Meta with enormous cloud power for AI, indicating its ascent to prominence in competition with Google, Microsoft, and Amazon.

Another indication that Oracle has grown into a major infrastructure provider is that it is negotiating a $20 billion cloud computing deal with Meta.

According to sources familiar with the negotiations, Oracle would supply the social media behemoth with processing capacity for the purpose of developing and implementing artificial intelligence models as part of the multiyear agreement. The persons, who requested not to be named because the talks were confidential, stated that before a formal agreement, the overall pledge amount may rise, and other parameters of the transaction might still alter.

The deal would be the latest in a string of victories for Oracle's cloud infrastructure division. The company's stock price reached an all-time high last week after it announced a massive surge in bookings. Oracle has already revealed cloud partnerships with Meta and other AI model training firms, such as Elon Musk's xAI. At the conclusion of business on Friday in New York, Oracle's stock increased 4.1% to $308.66. The company's cloud success has driven an 85% increase in the stock this year.

Oracle, well-known for its database software, is becoming a major supplier of AI processing power, going up against cloud giants Google, Microsoft, and Amazon. Meta chose not to respond. A request for comment from Oracle was not immediately answered.

 According to a Bloomberg story from August, Oracle and Meta were negotiating for more cloud capacity. However, the amount of Oracle's booked cloud transactions that can be attributed to a single client—OpenAI, the top AI Company—has raised concerns among investors. Oracle secured an agreement earlier this year to supply the AI Company with an unparalleled 4.5 gigawatts of processing capacity.