# Oracle signs $7 billion 10-year software deal with Pentagon

The Defense Department's massive Oracle software contract has been made public.

- **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb)
- **Published:** 2026-07-23
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://www.cnbc.com/2026/07/23/oracle-wins-10-year-pentagon-software-contract-worth-up-to-7-billion.html>
- **On Brifing:** https://brifing.si/s/8f4ab87a-09e4-4228-bce2-2a5f249f9f07

## Government-tech partnership

Oracle has signed a massive 10-year software deal with the U.S. Department of Defense worth up to $7 billion. The agreement covers military units' use of Oracle software in on-premises data centers.

## Comprehensive usage scope

The contract extends beyond military units to include the U.S. intelligence community and Coast Guard. CIA was Oracle's first known customer. The five-year base period includes perpetual and subscription-based licenses.

## Cost-saving claims

DoD CIO Kirsten Davies stated the deal saves taxpayers at least $441 million. The department claims to have fundamentally improved its procurement process for Oracle capabilities.

## Political connections

Oracle co-founder Larry Ellison has known ties to former President Trump, having donated $45 million to his 2024 campaign. The company was also involved in TikTok's U.S. operations.

## AI investments

Oracle is making significant investments to provide AI computing power to companies like OpenAI. However, its shares have dropped 38% this year as investors worry AI may threaten traditional software business.

## Industry implications

This deal strengthens Oracle's position in government agencies. Major tech investments in defense have critical implications for national security and the future of the technology industry.

## Sources covering this story

- https://www.cnbc.com/2026/07/23/oracle-wins-10-year-pentagon-software-contract-worth-up-to-7-billion.html — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._