Meta Platforms has signed a six-year cloud computing deal with Google, reportedly valued at more than $10 billion, according to a source familiar with the matter.
Meta to Use Google Cloud Infrastructure
Under this agreement, Meta will utilize Google Cloud’s servers, networking, storage, and related services to support its operations. While the deal was first reported by The Information, it has not yet been officially confirmed by either company. When asked, both Meta and Google declined to comment on the matter.
Zuckerberg’s AI Investment Plans
The deal aligns with recent remarks by Meta CEO Mark Zuckerberg, who in July stated that the company would invest hundreds of billions of dollars in building large-scale AI data centers. Shortly after, Meta raised its 2024 capital expenditure forecast to between $66 billion and $72 billion, increasing the lower bound by $2 billion.
Meta’s Data Center Strategy
Earlier this month, Meta revealed plans to offload $2 billion worth of data center assets as it looks for external partners to share the financial and operational burden of expanding its AI infrastructure. This strategy indicates that Meta is balancing between massive in-house investment and strategic partnerships to strengthen its AI ecosystem.
Google Cloud’s Growing Momentum
This partnership comes at a time when Google Cloud is gaining significant momentum. In June, Google announced an agreement to provide infrastructure support for OpenAI, which was considered a surprising alliance between two AI rivals. The collaboration reinforced Google Cloud’s position as a key provider for high-demand AI workloads.
Financial Growth in Alphabet’s Cloud Division
Alphabet’s cloud division reported a 32% increase in revenue in Q2, surpassing analyst expectations. Analysts believe that the Meta deal could further boost Google Cloud’s growth trajectory and solidify its standing in the competitive cloud market.
Impact on the AI and Cloud Industry
The Meta-Google partnership highlights the growing demand for AI-driven infrastructure and the increasing reliance on cloud providers to scale operations. With AI development requiring massive computing power, deals like these are becoming critical in shaping the future of cloud computing and artificial intelligence.
