Oracle's ORCL expanding cloud partnerships are shaping up to be a powerful catalyst for long-term upside. With signed multibillion-dollar contracts already driving cloud consumption and more deals in the pipeline, the company is positioning itself as a key player in the fast-growing AI infrastructure market. In the first quarter of fiscal 2026, management disclosed landmark agreements with OpenAI, Meta, NVIDIA and AMD. These agreements contributed to the surge in Remaining Performance Obligations (RPO), providing investors with exceptional visibility into future revenues.
The long-term prospects of these contracts are substantial. OpenAI alone reportedly signed a landmark $300 billion deal for computing power over five years, one of the largest cloud contracts ever. Oracle noted that 33% of total RPO will convert into revenues within 12 months, offering meaningful near-term upside. Management also expects to sign additional multi-billion-dollar customers by the end of fiscal 2026.
To meet this demand, Oracle is investing aggressively in infrastructure. It has committed $35 billion in CapEx for fiscal 2026 to build 37 new multi-cloud data centers. This capacity expansion aligns directly with its AI-driven backlog, ensuring the company can deliver on existing contracts while positioning itself for new opportunities as AI adoption accelerates.
While execution and margin pressures remain challenges, Oracle's expanding AI deal pipeline represents a powerful growth lever. With the Zacks Consensus Estimate projecting 16% revenue growth in fiscal 2026 and nearly 19% in 2027 year over year, the company's AI partnerships are set to transform its revenue mix, providing a compelling case for long-term upside.
Alphabet GOOGL-owned Google Cloud is rapidly expanding its global reach through multi-billion-dollar partnerships. Its most notable partnership was with Meta in 2025, which signed a six-year cloud deal worth more than $10 billion to leverage Google's servers, storage and advanced networking. Meanwhile, Atlassian has chosen Google Cloud to host Jira and Confluence in a multi-cloud strategy. With AI/ML, advanced analytics and global leadership, Google Cloud is further strengthening its role as a premier enterprise partner.
Amazon AMZN, through Amazon Web Services (AWS), is strengthening its dominance through a vast partner ecosystem and high-profile alliances. In 2025, AWS partnered with Nvidia for AI infrastructure, launched its Secret-West Region for government clients, and deepened ties with OpenAI and CrowdStrike. The London Stock Exchange Group chose AWS as its preferred cloud provider, while enterprises like PepsiCo, Airbnb, Nissan, GitLab, SAP and Warner Bros. These partnerships highlight AWS' scale, resilience and leadership in driving global digital transformation.