On May 1, 2026, the U.S. Department of War announced a new agreement with Oracle Corporation to deploy Oracle’s advanced artificial‑intelligence capabilities on the Department’s classified networks. The deal is part of the Department’s AI Acceleration Strategy, which seeks to embed AI across warfighting, intelligence, and enterprise operations.
Oracle’s AI strategy centers on high‑performance, cost‑effective infrastructure and an integrated AI data platform. The company’s focus on secure, high‑performance AI aligns with the Department’s need to run advanced models on Impact Level 6 and Impact Level 7 networks, the highest tiers of classified cloud security. Oracle is one of eight companies selected by the Department to provide AI solutions for classified environments, joining partners such as SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft, and Amazon Web Services.
Oracle’s recent financial performance underscores the strategic value of the new contract. In Q1 FY2026, Oracle reported total revenue of $14.9 billion, up 12% year‑over‑year, with cloud revenue rising 28%. The prior quarter, Q4 FY2025, saw revenue of $15.9 billion, up 11% YoY, with cloud services and license support revenue up 14%. These results demonstrate Oracle’s growing momentum in cloud and AI, positioning it to capture the new defense revenue stream.
Oracle’s executive vice president for Government, Defense & Intelligence, Kim Lynch said, “This agreement reflects a shared commitment between the Department of War and Oracle to help ensure that the United States leads decisively in artificial intelligence, as a matter of ongoing global leadership and national security.” She added, “By bringing advanced AI into classified environments, we are translating innovation into operational advantage where and when it matters most.”
The Department’s chief technology officer, Emil Michael, noted, “Integrating advanced AI into classified environments is critical to maintaining our operational edge.” He added, “The War Department’s agreement with Oracle provides the secure, high‑performance infrastructure we require to deploy and scale AI in the most sensitive environments while maintaining control over data, ensuring the Joint Force has access to a diverse suite of AI capabilities.”
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