Meta Strikes $10 Billion Cloud Deal with Google to Power AI Ambitions

Meta Platforms has reportedly entered into a massive six-year cloud computing agreement with Google, estimated to be worth more than $10 billion, according to sources familiar with the matter.

Details of the Agreement

Under the deal, Meta will leverage Google Cloud’s infrastructure — including servers, storage, networking, and related services — to enhance its global operations. The agreement was first reported by The Information, though neither Meta nor Google has issued an official confirmation, with both companies declining to comment on the report.

Meta’s Growing AI Investments

This deal comes on the heels of Meta CEO Mark Zuckerberg’s announcement in July that the company plans to invest hundreds of billions of dollars into building advanced AI-driven data centers. Reflecting this strategy, Meta recently increased its 2024 capital expenditure forecast to between $66 billion and $72 billion, raising the lower limit by $2 billion.

In addition, Meta revealed plans earlier this month to sell $2 billion worth of data center assets, seeking external partners to share the cost of its rapidly expanding AI infrastructure.

Boost for Google Cloud

The partnership also represents a significant win for Google Cloud, which has been gaining momentum in the AI and enterprise infrastructure market. In June, Google signed a high-profile deal to provide cloud infrastructure to OpenAI, marking a rare collaboration between rivals in the AI space.

Alphabet’s cloud division has been performing strongly, posting an almost 32% revenue increase in Q2, exceeding analyst expectations. The new deal with Meta is expected to further strengthen Google Cloud’s position as a leading provider of high-performance AI infrastructure.