Oracle shares jumped 4% to an all-time high after revealing a cloud services agreement worth more than $30 billion annually. CNBC reports that CEO Safra Catz disclosed the deal in a Securities and Exchange Commission filing Monday.

The revenues will start in fiscal year 2028, according to the filing. Catz plans to share details at a company meeting, telling colleagues Oracle signed multiple large cloud services agreements. The customer remains unnamed in public documents.

Oracle generated $57.4 billion in total revenue for fiscal 2025, which ended May 31. The new deal represents nearly three times the size of Oracle's current cloud infrastructure business, which totaled $10.3 billion over the past four quarters.

Why This Deal Matters

This agreement transforms Oracle's competitive position in the cloud computing market. The $30 billion annual commitment would represent approximately half of Oracle's current total revenue when it begins in 2028.

Reuters reported Oracle expects total cloud growth to accelerate from 24% in fiscal 2025 to over 40% in fiscal 2026. The company's cloud infrastructure revenue already grew 49% year-over-year to $2.7 billion in its most recent quarter.

Oracle's MultiCloud database revenue continues growing at over 100%, according to the filing. The database giant has been expanding rapidly, with 23 multi-cloud datacenters live and 47 more under construction over the next 12 months.

Industry Implications

Oracle's deal arrives as artificial intelligence workloads drive unprecedented demand for cloud computing capacity. The database company has positioned itself as a specialized provider for AI training and inference workloads through its Gen2 cloud architecture.

Amazon Web Services dominates with 31% market share, followed by Microsoft Azure at 20% and Google Cloud at 12%. Network World notes Oracle holds approximately 3% market share but analysts view this deal as evening the playing field with major hyperscalers.

Oracle has secured key partnerships with AI companies including OpenAI through the Stargate venture and major cloud agreements with Meta and Nvidia. The company expects demand for AI infrastructure to remain in hypergrowth phase for the foreseeable future.

Traditional cloud providers face increasing competition as companies seek alternatives for AI workloads. Oracle's multi-cloud approach allows customers to access Oracle databases within rival hyperscaler environments, creating unique value propositions for enterprise clients.

Further Reading

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