{"id":780779,"date":"2026-07-23T23:45:17","date_gmt":"2026-07-23T23:45:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/780779\/"},"modified":"2026-07-23T23:45:17","modified_gmt":"2026-07-23T23:45:17","slug":"oracle-wins-10-year-pentagon-software-contract-worth-up-to-7-billion","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/780779\/","title":{"rendered":"Oracle wins 10-year Pentagon software contract worth up to $7 billion"},"content":{"rendered":"

From left, President Donald Trump, Oracle’s Larry Ellison, SoftBank’s Masayoshi Son and OpenAI’s Sam Altman appear at the White House in Washington on Jan. 21, 2025.<\/p>\n

Jim Watson | Afp | Getty Images<\/p>\n

The Pentagon on Thursday announced a contract with Oracle<\/a> worth almost $7 billion over a decade, a big win for the software maker, which has been punished by investors this year. The stock rose about 3% in extended trading.<\/p>\n

The contract covers the use of Oracle software in on-premises data centers for branches of the military, the U.S. intelligence community and the Coast Guard, according to a statement. The Central Intelligence Agency was Oracle’s first customer. A five-year base period for the contract includes perpetual and subscription-based software licenses, maintenance and consulting, according to one description<\/a>. <\/p>\n

Kirsten Davies, the Department of Defense’s chief information officer, said in the release that the agency is saving at least $441 million for taxpayers “by fundamentally improving how we procure on-premises Oracle capabilities.”<\/p>\n

Earlier this week, Defense Secretary Pete Hegseth estimated<\/a> that the Iran war, which began in February, has cost the U.S. $37.5 billion.<\/p>\n

Oracle co-founder Larry Ellison<\/a> has long been a supporter of President Donald Trump, reportedly<\/a> contributing $45 million to a nonprofit backing Trump’s 2024 presidential campaign.<\/p>\n

Ellison was among the first guests to appear in the White House during Trump’s second term, announcing plans for Stargate<\/a> artificial intelligence data centers in the U.S. Trump supported Oracle taking a stake<\/a> in TikTok’s U.S. business, and in May, the Defense Department announced agreements<\/a> with Oracle and other tech companies around AI deployments in classified networks.<\/p>\n

Still, Oracle shares are down 38% this year, as investors have grown concerned<\/a> that AI could hurt growth prospects for software incumbents. The company is also racking up tens of billions of dollars in debt<\/a> to build out AI data centers. <\/p>\n

Oracle said in June that quarterly software revenue declined 2% from a year earlier, though the company’s database software is widely used inside large companies. Cloud revenue climbed 47% as the company rushes to supply AI computing power to OpenAI and other clients. <\/p>\n

WATCH: Oracle reportedly facing cost overruns<\/a><\/p>\n

\"OracleChoose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"From left, President Donald Trump, Oracle’s Larry Ellison, SoftBank’s Masayoshi Son and OpenAI’s Sam Altman appear at the…\n","protected":false},"author":2,"featured_media":780780,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[1071,5681,28,122,46698,12,11718,69141,28785,2474,1572,111,7271,74,21],"class_list":["post-780779","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-breaking-news-politics","tag-breaking-news-technology","tag-business","tag-business-news","tag-dell-technologies-inc","tag-donald-trump","tag-enterprise","tag-larry-ellison","tag-michael-dell","tag-oracle-corp","tag-pete-hegseth","tag-politics","tag-software","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/780779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=780779"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/780779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/780780"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=780779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=780779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=780779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}