Google has signed a six-year cloud computing agreement with Meta Platforms worth over $10 billion, a source familiar with the matter told reporters on Thursday. The deal marks Google’s second major cloud partnership recently, following its agreement with OpenAI.
According to the source, who requested anonymity due to the confidential nature of the discussions, Meta will rely on Google Cloud’s servers, storage, networking, and other services to strengthen its infrastructure. Both Google and Meta have yet to respond to requests for comment. The Information was the first to report the development.
The agreement comes after Meta CEO Mark Zuckerberg stated in July that the company planned to invest hundreds of billions of dollars to build several massive AI data centres. Last month, Meta increased the lower end of its annual capital expenditure forecast by $2 billion, setting a new range of $66 billion to $72 billion.
To support its growing AI ambitions, Meta is also seeking external partners to fund the necessary infrastructure. Earlier this month, the company disclosed in a regulatory filing that it intends to offload $2 billion in data centre assets to raise capital.
In June, it was reported that OpenAI was preparing to integrate Alphabet’s Google Cloud services to meet its expanding computing demands, signalling an unexpected collaboration between two major rivals in the artificial intelligence sector.
Meanwhile, Google’s cloud division continues to perform strongly, reporting nearly a 32% surge in second-quarter revenue in July, surpassing analysts’ expectations.
Faridah Abdulkadiri
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