Pentagon Awards Oracle $7 Billion 10-Year Data Center Software Deal as Shares Rise 3%
Updated
Updated · CNBC · Jul 23
Pentagon Awards Oracle $7 Billion 10-Year Data Center Software Deal as Shares Rise 3%
3 articles · Updated · CNBC · Jul 23
Summary
$7 billion over 10 years will fund Oracle software for on-premises data centers used by U.S. military branches, the intelligence community and the Coast Guard.
The Pentagon said the procurement overhaul will save taxpayers at least $441 million, with CIO Kirsten Davies calling it a fundamental improvement in buying Oracle capabilities.
Oracle shares rose about 3% in extended trading, offering relief after the stock had fallen 38% this year on investor worries that AI could weaken legacy software growth.
The award adds to Oracle's expanding U.S. government footprint after May AI agreements for classified networks, even as the company takes on heavy debt to build AI data centers.