Google scores six-year Meta cloud deal worth over $10 billion

Meta Platforms has entered into a substantial agreement to utilize Google Cloud services, committing over $10 billion over a six-year period. Sources familiar with the deal, who prefer to remain anonymous due to the confidential nature of the terms, confirmed the details, which were initially reported by The Information. This strategic partnership comes as Google intensifies its efforts to secure significant cloud contracts, seeking to compete more aggressively with industry leaders Amazon Web Services and Microsoft Azure. Earlier this year, Google successfully acquired cloud business from OpenAI, which had previously relied heavily on Microsoft's Azure infrastructure. In its financial report from July, Alphabet revealed that Google Cloud generated $2.83 billion in operating income on $13.6 billion in revenue during the second quarter, showcasing a remarkable revenue growth of 32%, surpassing the overall company growth of 13.8%. The agreement with Meta primarily focuses on bolstering artificial intelligence infrastructure, highlighting both companies' commitment to innovation in this space. Meta has indicated in recent earnings updates that it anticipates total expenses for 2025 to range between $114 billion and $118 billion, with a significant portion allocated to AI infrastructure and talent acquisition. The company is also expanding its Llama family of AI models and integrating AI capabilities across its various services. Despite their historical rivalry in the online advertising sector, Meta's need for robust cloud infrastructure is paramount as it operates multiple data centers and has previously committed to using cloud services from both Amazon and Microsoft. The evolving landscape of cloud computing and AI development continues to reshape partnerships and competition among these tech giants.