Hassan Khan
Meta Platforms has signed a six-year cloud computing deal with Google, valued at more than $10 billion, according to a source familiar with the matter.
As per this contract, Meta will support its activities by leveraging Google Cloud’s servers, networking, storage, and other services. Either corporation has yet to formally acknowledge the agreement, which was first reported by The Information. Google and Meta both chose not to comment on the situation.
The agreement comes after Mark Zuckerberg, the CEO of Meta, announced in July that the business will spend hundreds of billions of dollars developing massive AI data centers. Meta then increased the lower bound by $2 billion and increased its 2024 spending on capital estimate to approximately $66 billion and $72 billion.
As it looks for outside collaborators to split the cost of growing its AI infrastructure, Meta also revealed earlier this month that it aims to sell off $2 billion worth of data center assets.
This collaboration builds on Google Cloud’s recent gains, which include its June commitment to support OpenAI’s infrastructure. This partnership further solidified Google Cloud as a leading supplier for indemand AI applications and represented an unexpected alliance amongst AI adversaries.
In Q2, Alphabet’s cloud segment posted a nearly 32% growth in sales, above analyst projections. That development momentum may be further reinforced by the Meta transaction.
Conclusion
This $10 billion deal between Meta and Google Cloud marks more than just a partnership it highlights the accelerating AI race among tech giants. For Meta, it provides the infrastructure needed to support its massive AI ambitions while sharing the costs of data center growth. For Google Cloud, it’s another big win that strengthens its position as a leading AI infrastructure provider, even as it collaborates with rivals. The move signals a future where partnerships between competitors may become essential to sustain the rapid growth of AI technologies.
