Oracle Signs Cloud Deal Targeting $30B Revenue by 2028
Oracle has signed a landmark cloud-services agreement that is expected to generate more than $30 billion in annual revenue by 2028. This announcement, made by Oracle CEO Safra Catz, highlights the company’s ongoing growth in the cloud sector. In a filing with the U.S. Securities and Exchange Commission, Catz revealed that Oracle’s revenue from its database services running on rival cloud platforms is already increasing at an annual growth rate of over 100%. This deal is one of several large cloud agreements Oracle has signed since the beginning of its 2026 fiscal year.
Expanding AI Infrastructure with Stargate and Key Partnerships
Earlier this year, Oracle partnered with OpenAI and SoftBank to create the Stargate joint venture, focusing on massive AI infrastructure expansion. The venture, which has received backing from U.S. President Donald Trump and is set to attract up to $500 billion in private-sector investments, aims to provide significant computing power for AI applications. The project is initially supported by SoftBank, OpenAI, Oracle, and MGX, with an immediate capital infusion of $100 billion. The additional funds are expected over the next four years, underscoring Oracle’s commitment to meeting the surging demand for AI infrastructure.
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In addition to Stargate, Oracle has strengthened its position in the AI space through a partnership with IBM. As part of this agreement, Oracle will integrate IBM’s Watson X AI products into Oracle Cloud Infrastructure (OCI), offering businesses powerful tools to enhance productivity and streamline operations.
Positive Market Response
Oracle's aggressive expansion into the AI and cloud markets has been well received by investors. Shares of the company surged by more than 5% on the Nasdaq following the announcement, reaching an all-time high. This positive market response reflects growing confidence in Oracle’s strategic direction and its ability to capitalize on the burgeoning demand for AI and cloud computing services.
