Oracle signs a major cloud contract with an undisclosed client.

Oracle has signed a cloud contract worth over $30 billion annually, marking a significant expansion of its revenue from this area, as the company's total cloud revenue for fiscal year 2025 was $24.4 billion. This new agreement was highlighted by CEO Safra Catz, who mentioned that the company has started the fiscal year "strong" by signing several significant contracts in the cloud sector.

According to a presentation to the SEC, the contract in question was signed for fiscal year 2026, but it will not go into effect until 2028. This has sparked speculation among investors about who might be the partner behind this major deal. Some of the most mentioned possibilities include OpenAI, which collaborates with Oracle on Project Stargate, Temu, a new Oracle client, and TikTok, which already uses Oracle Cloud in the United States.

Furthermore, the contract represents a major breakthrough for Oracle, as it provides a considerable increase in the company's financial stability. Nonetheless, Oracle’s capital expenditures have tripled in a year, rising from $7 billion to $21 billion. Looking ahead, the company expects a 70% growth in cloud infrastructure revenue by the end of this fiscal year, with projections to reach total revenues of approximately $104 billion by fiscal year 2029.

In other plans, Oracle has confirmed that it is developing an artificial intelligence data center campus near Dallas, which will require a $40 billion investment and will provide 400,000 Nvidia GB200 GPUs for Project Stargate. The company also plans to invest up to $500 billion in infrastructure to meet the growing demand.