Pentagon awards Oracle nearly $7 billion contract over 10 years

According to CNBC, the Pentagon on Thursday announced a contract with Oracle worth almost $7 billion over a decade, and Oracle shares rose about 3% in extended trading. The deal covers Oracle software used in on-premises data centers for military branches, the U.S. intelligence community and the Coast Guard, while the Central Intelligence Agency was Oracle's first customer. Kirsten Davies, the Department of Defense's chief information officer, said the agency is saving at least $441 million for taxpayers by changing how it buys Oracle on-premises capabilities. Oracle shares remain down 38% this year as investors worry that AI could hurt growth at software incumbents, and the company is also taking on tens of billions of dollars in debt to build AI data centers.