Oracle (ORCL.US) is reportedly in negotiations with Meta (META.US) for a cloud computing partnership valued at approximately $20 billion. This development further demonstrates Oracle's emergence as a significant infrastructure service provider in the industry.

According to sources familiar with the matter, under this multi-year agreement, Oracle would provide computing power for the social media giant's artificial intelligence (AI) model training and deployment. The sources indicated that the total commitment amount could potentially increase before the final agreement is reached, and other collaboration terms remain subject to adjustment.

If the deal materializes, it would mark another major victory for Oracle's cloud infrastructure business. Last week, Oracle reported substantial growth in order volume, a performance that drove the company's stock price to historic highs.

Previously, Oracle had disclosed cloud service partnerships with Meta and other AI model training companies, including Elon Musk's xAI company. On Friday, Oracle's stock closed at $308.66, gaining 4.1% for the day. Driven by strong cloud business performance, the company's shares have surged 85% year-to-date.

While Oracle is renowned for its database software, it is now emerging as a key supplier in the AI computing power sector, competing with cloud service industry leaders including Amazon (AMZN.US), Microsoft (MSFT.US), and Google (GOOGL.US).

Meta declined to comment on the matter, while Oracle did not immediately respond to requests for comment. Reports as early as August indicated that Oracle was in discussions with Meta regarding increased cloud service resource provision.

However, investors remain concerned about one issue: what proportion of Oracle's signed cloud service orders comes from a single major AI client, OpenAI. Earlier this year, Oracle secured a partnership to provide 4.5 GW of computing power resources to OpenAI, a scale that set an industry precedent.