TMTPOST --   Oracle Corporation   on   Thursday confirmed a   cloud deal   with   Facekbook operator Meta   Platforms,   Inc., and   seems to reassure   investors   with   the stronger-than-expected guidance for the coming years.

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In   just 30 days of the current quarter,   Oracle   Cloud   Infrastructure   ( OIC )   signed $65 billion in new cloud infrastructure   commitments, said   one of new co-CEOs Clay   Magouyrk   at Oracle ’ s annual AI   World   conference   in   Las Vegas   on Thursday. Importantly, he   noted   the new commitments   that   Oracle ’ s cloud unit booked   came from seven contracts with four customers   rather than   OpenAI, and one of these customers   is Meta.

"It was across seven different contracts from four different customers," Magouyrk said. "None of those customers are OpenAI. I know some people are questioning sometimes, ’ Hey, is it just OpenAI? The reality is, we think OpenAI is a great customer, but we have many customers."  

Oracle   last month   was reported to discuss with   Meta for a   multi-year   cloud computing deal worth about $20   billion. Under the reported deal, Oracle would supply computing capacity for Meta ’ s training and deploying   AI models.

Oracle leadership at   Thursday ’ s meeting also released rosy financial guidance for these years.

The   software   make   foresees   $20 billion in artificial intelligence ( AI ) -powered   database   and AI data   platform revenue in the 2030   fiscal year, representing a big jump   from the $2.4 billion expected in   fiscal 2025 and the $3 billion   projected a year   later.  

The   annual   revenue for fiscal year   2030 is   projected to be $225   billion, beating   the   $198   billion average estimate of   analysts, and expected   $21 per share of adjusted profit by that year, versus   analysts ’   average   anticipation   of   $18.5 a   share.   Oracle   projected   $166   billion in cloud-infrastructure   revenue by fiscal 2030,   growing revenue at a   rate of 75%   each year.

Oracle provided a surprisingly high   margin   outlook   for its AI datacenter business, mitigating   concerns over profitability of a critical new business unit.   The   company said delivery of AI cloud computing infrastructure   is   anticipated to generate   adjusted gross margins of between 30% and 40%, while other segments such as more conventional cloud software and infrastructure for business customers would have margins of between 65% and 80%.   Mizuho analyst Siti   Panigraphi in a note last   week had   expected   OIC gross margins   of 25%.  

Oracle saw those margins to be steady over the term   of a   contract.   In a presentation   to investors,   the company   took an   example   of an infrastructure   project for AI workloads,   which would bring   a total of $60 billion in revenue over six years,   and book   about $6.4   billion of costs   per year. That would lead to   a gross margin of 35%. The margin profile on this example is "illustrative of even the very largest customers,"   Magouyrk   told analysts at the meeting.

That margin   defied a   report last week that   raised new   concerns over profitability of AI computing, Oracle ’ s highly   anticipated business   driving its stock surged more than 70% to the date this year.

For   the   first quarter of the fiscal   year 2026 ended August 31   ( Q1 ) ,   Oracle ’ s rentals of servers generated around $900 million   and booked gross profit of $125 million,   equal to   profit   of $0.14   for every 1% of   sales, The   Information   reported on October 7, citing internal documents.   That represented a gross   margin   of 14%,   significantly   lower than Oracle ’ s   overall   margin of   around   70%   and also lower   than many on Wall   Street have been anticipating.

While sales from Oracle ’ s rental of servers   powered by Nvidia   Corporation   AI   chips   nearly   tripled over the past year, it just recorded   an average   gross margin of about 16%   in the   same   period   , ranging from   less than 10% to slightly more than   20%, according to the reported documents.