Oracle Reportedly Offers US Government Steep Discounts: Retail Traders Raise Eyebrows As Stock Scales New Peaks

Oracle Corp. (ORCL) is reportedly offering steep discounts on its software to federal customers, joining a list of tech companies that have taken similar steps.

The Wall Street Journal said, citing the General Services Administration (GSA), that the database giant was offering 75% discounts on its license-based database and analytics software through the end of November. The company, founded by Larry Ellison, would also provide substantial discounts on its cloud service, the GSA added.

The deal also provides the federal government with access to Oracle’s artificial intelligence (AI) services and special assistance, enabling the migration of IT systems to the cloud.

The GSA oversees procurement for the federal government. 

The agency reportedly stated that the deal with Oracle is the first of its kind, offering a discounted package on cloud infrastructure for the entire government. It plans to use the same framework for negotiating deals with other cloud providers.

Oracle stock has been on a strong run in recent sessions, gaining over 43% for the year-to-date period.

In May, Salesforce (CRM) reduced the pricing for its Slack messaging app for government customers by 90% through November. Alphabet (GOOGL) (GOOG) lowered the pricing of its software but not its cloud infrastructure for federal customers. Adobe (ADBE) and Elastic (ESTC) have also offered discounted pricing for their respective software. 

Federal Acquisition Service Commissioner Josh Gruenbaum reportedly told the Journal in an interview: “Through procurement consolidation, we’re aiming to bring the leverage of the whole, commanding purchasing power of the federal wallet to these [technology providers] to get the best discounts for the taxpayers.”

Oracle has aligned with the Trump administration’s initiatives to maintain America’s leadership in AI. Ellison was found along with President Trump when he announced the Stargate private AI initiative, spearheaded by Sam Altman-led OpenAI and Japan’s Softbank, immediately after he took office in January. 

The report comes on the heels of a strong rally in Oracle stock, which rallied over 5% on Wednesday after Bloomberg reported, citing people familiar with the matter, an expanded Stargate alliance. The report said OpenAI has agreed to rent additional computing power, totaling 4.5 gigawatts of data center power in the U.S., from Oracle. 

In a late-June filing, Oracle disclosed that the company has signed multiple large cloud services agreements, including one that is expected to contribute more than $30 billion in annual revenue starting in fiscal year 2028.

On Stocktwits, retail sentiment toward Oracle stock was ‘neutral’ (53/100) by late Sunday, while the message volume tapered to ‘low’ from ‘normal’ a day ago.

A bullish user expressed optimism about Oracle potentially acquiring TikTok in the U.S. 

Another user expected a pullback. “Has pumped near 100% in 3 months, now overextended and overbought,” they said.

Oracle, which ended Thursday’s session up 3.19% at a record $237.32, fell about 0.59% in overnight trading.

Editor’s note: A previous version of this article incorrectly said the GSA reduced Slack pricing for government customers. It was Salesforce that made the reduction.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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