Meta has signed a major cloud computing deal with Google Cloud, valued at over $10 billion. The agreement will last six years and will support Meta’s growing AI infrastructure needs.
Under the deal, Meta will use Google Cloud’s servers, networking, and storage services. This move is part of Meta’s strategy to scale up its artificial intelligence capabilities.
The deal has not been officially confirmed by either Meta or Google, but it was first reported by The Information. Both companies declined to comment.
Earlier this year, Meta CEO Mark Zuckerberg said the company would invest heavily in building AI data centers. In July, Meta raised its capital expenditure forecast for 2024 to between $66 billion and $72 billion.
To manage costs, Meta also plans to sell $2 billion worth of data center assets. The company is looking for external partners to help carry the financial load of expanding its AI operations.
This agreement is a big win for Google Cloud. It adds to recent successes, including a June deal to support OpenAI’s infrastructure. That partnership surprised many because it brought together two AI rivals.
Google Cloud’s parent company, Alphabet, recently reported a 32% increase in cloud revenue for Q2. The new deal with Meta is expected to boost growth even further.
Meta’s decision to work with Google Cloud highlights the need for strong and scalable cloud support in AI development. As the company builds out its AI tools and services, reliable infrastructure will be critical.
This partnership also reflects a growing trend where tech giants work together in certain areas, even while competing in others. For Meta, the deal could help deliver AI-powered products faster while reducing infrastructure costs.
The agreement shows how important cloud services have become in the race to build advanced AI systems.
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