Meta Strikes $10 Billion Cloud Deal with Google to Fuel Massive AI Expansion
Google has entered into a six-year cloud computing agreement with Meta Platforms valued at over $10 billion, a source familiar with the matter said. The deal marks Google’s second major contract in recent weeks, following one with OpenAI. According to the source, who requested anonymity due to confidentiality, Meta will rely on Google Cloud’s servers, networking, storage, and related services.
Neither Google nor Meta responded immediately to requests for comment. The Information was the first outlet to report the deal. The development comes just weeks after Meta CEO Mark Zuckerberg stated in July that the company planned to invest hundreds of billions of dollars in building large-scale AI data centers.
Meta’s Expanding AI Investments
Last month, Meta increased the lower end of its annual capital expenditure forecast by $2 billion, setting the range at $66 billion to $72 billion. The company is also exploring partnerships to support its infrastructure buildout. Earlier this month, Meta revealed in a filing that it intends to offload $2 billion in data center assets to outside partners in order to free up resources for new projects.
Meanwhile, competition in the AI sector has fueled a surge of cloud-related agreements. In June, Reuters reported that OpenAI was preparing to expand its use of Google Cloud to address its rising computing requirements, despite the rivalry between the companies.
Google’s Cloud Momentum
These deals come as Google’s cloud division experiences robust growth. In July, the unit reported nearly a 32% increase in second-quarter revenue, surpassing analyst expectations. This momentum suggests that demand for large-scale computing power is rising quickly, especially as AI development intensifies across the industry.
