Google has signed a six-year cloud computing deal with Meta Platforms, valued at $10 billion, according to a source. This is Google Cloud’s second-biggest deal in recent months, following its agreement with OpenAI.
AI growth in focus
Under the agreement, Meta will use Google Cloud’s infrastructure, including servers, networking support, and storage—driven by its rapidly expanding AI ambitions. While no official statement has been released, Meta CEO Mark Zuckerberg earlier revealed plans to invest “hundreds of billions of dollars” in building large-scale AI data centers. Meta has also raised its annual capital expenditure guidance to between $66 billion and $72 billion, up by $2 billion.
Google Cloud riding AI wave
With soaring AI demand, Google’s cloud unit has been rapidly capitalizing. July revenue records showed a 32% jump in second-quarter revenue, surpassing Wall Street forecasts. While Meta and Google remain rivals in digital advertising, this deal highlights the massive resources required to advance in AI.
Meta doubles down on AI infrastructure
“I’m eager to create personal superintelligence that can be accessible to everyone across the globe,” Zuckerberg said during a revenue call last month. According to the source, the deal ranks among the largest in Google Cloud’s 17-year history. Alphabet’s latest earnings report revealed that its cloud division is on track to generate $50 billion this year. Meta’s second-quarter report, meanwhile, showed most of its capital spending directed toward AI infrastructure.