Meta Signs $10 Billion Cloud Computing Deal with Google Amid AI Race

Meta Signs $10 Billion Google Cloud Computing Deal Amid AI Race

Meta Platforms Inc. has agreed to a deal worth at least $10 billion with Alphabet Inc.'s Google for cloud computing services, according to people familiar with the matter, part of the social media giant's spending spree on artificial intelligence. Facebook and Instagram's parent company will pay a minimum of $10 billion over six years to use Google Cloud's servers and storage in an effort to quickly bring online more computing power as it competes in the race to offer users AI tools, according to the people, who asked not to be named discussing details of the agreement that remain private.

Meta signs over $10 billion cloud deal with Google, source says

Aug 21 (Reuters) - Google (GOOGL.O), opens new tab has struck a cloud computing deal with Meta Platforms (META.O), opens new tab worth more than $10 billion, a source familiar with the matter told Reuters on Thursday. Under the agreement, Meta will use Google Cloud's servers, storage, networking and other services, the source added. Google and Meta did not immediately respond to requests for comment. The deal was first reported by the Information. The news comes after Meta CEO Mark Zuckerberg's comments in July that the company would spend hundreds of billions of dollars to build several massive AI data centers. In June, Reuters reported that OpenAI was planning to add Alphabet's Google Cloud service to meet its growing needs for computing capacity. Meta is seeking outside partners to help it fund the massive infrastructure needed to power AI by offloading $2 billion in data center assets, the company disclosed in a filing earlier this month. Reporting by Sayantani Ghosh in San Francisco and Angela Christy in Bengaluru; additional reporting by Yazhini MV in Bengaluru; editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

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

The agreement spans six years, said the people, who asked not to be named because the terms are confidential. The deal was reported earlier by The Information. Google is aiming to land big cloud contracts as it chases larger rivals Amazon Web Services and Microsoft Azure in cloud infrastructure. Earlier this year Google won cloud business from OpenAI, which had earlier been deeply dependent on Microsoft's Azure infrastructure. Alphabet said in July that the Google Cloud unit, which contains productivity software subscriptions in addition to infrastructure, produced $2.83 billion in operating income on $13.6 billion in revenue during the second quarter. Revenue growth of 32% outpaced expansion of 13.8% for the company as a whole. Meta's deal with Google is mainly around artificial intelligence infrastructure, said one of the people. Meta said in its earnings report last month that it expects total expenses for 2025 to come in the range of $114 billion and $118 billion. It's investing heavily in AI infrastructure and talent, building out its Llama family of models and adding AI across its portfolio of services. Meta and Google have long been rivals in online ads. But Meta needs all the cloud infrastructure it can access. The company operates data centers and has made commitments to use cloud services from Amazon and Microsoft.

Meta makes huge cloud computing deal with Google: source

San Francisco (United States) (AFP) - Meta has made a cloud computing deal with Google worth more than $10 billion over the course of six years, a source close to the transaction told AFP Thursday. The source confirmed a report at tech news outlet The Information about the arrangement, which will include Meta using Google datacenter servers, storage, networking and other services. Meta declined to comment. Meta chief executive Mark Zuckerberg has embarked on a major artificial intelligence spending spree, poaching top researchers with expensive pay packages from rivals like OpenAI and Apple as he builds a team to pursue what he calls AI superintelligence. "I'm excited to build personal superintelligence for everyone in the world," Zuckerberg said in an earnings call late last month. Meta is locked in a bitter rivalry with other tech behemoths as they invest heavily in AI. The deal with Meta is among the biggest in the 17-year history of Google's cloud unit, according to the source. Google parent Alphabet's cloud computing business was on pace to bring in $50 billion over the course of the year, the company said in a recent earnings report. Meta also reported robust second-quarter financial results, and significantly increased its capital expenditures to $17 billion in the quarter, primarily for AI infrastructure investments. Meta projected total 2025 capital spending between $66 billion and $72 billion. A strong quarter "won't shield Meta from questions concerning the company's future as it breathlessly tries to keep up in the AI race," Emarketer analyst Minda Smiley said of the quarterly earnings. In a post outlining Meta's AI strategy, Zuckerberg has signaled that the remainder of the decade would be a transformative period for artificial intelligence development and that the company's priority was to bring AI to its users.

Meta signs $10 billion-plus cloud deal with Google - The Economic Times

Meta has struck a $10 billion, six-year cloud computing deal with Google, marking one of the largest in Google Cloud's history. The agreement supports Meta's major AI push, including infrastructure expansion and talent acquisition, as CEO Mark Zuckerberg aims to develop "personal superintelligence" amid intense AI industry competition.Meta has made a cloud computing deal with Google worth more than $10 billion over the course of six years, a source close to the transaction told AFP Thursday. The source confirmed a report at tech news outlet The Information about the arrangement, which will include Meta using Google datacenter servers, storage, networking and other services. Meta declined to comment. Meta chief executive Mark Zuckerberg has embarked on a major artificial intelligence spending spree, poaching top researchers with expensive pay packages from rivals like OpenAI and Apple as he builds a team to pursue what he calls AI superintelligence. "I'm excited to build personal superintelligence for everyone in the world," Zuckerberg said in an earnings call late last month. Meta is locked in a bitter rivalry with other tech behemoths as they invest heavily in AI. The deal with Meta is among the biggest in the 17-year history of Google's cloud unit, according to the source. Google parent Alphabet's cloud computing business was on pace to bring in $50 billion over the course of the year, the company said in a recent earnings report. Meta also reported robust second-quarter financial results, and significantly increased its capital expenditures to $17 billion in the quarter, primarily for AI infrastructure investments. Meta projected total 2025 capital spending between $66 billion and $72 billion. A strong quarter "won't shield Meta from questions concerning the company's future as it breathlessly tries to keep up in the AI race," Emarketer analyst Minda Smiley said of the quarterly earnings. In a post outlining Meta's AI strategy, Zuckerberg has signalled that the remainder of the decade would be a transformative period for artificial intelligence development and that the company's priority was to bring AI to its users.

Mark Zuckerberg's Meta Strikes $10 Billion Cloud Pact with Google To Power AI Ambitions Despite Tech Rivalry: Report - Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

Meta Platforms Inc. META has reportedly signed an agreement to spend more than $10 billion on Alphabet Inc.'s GOOG GOOGL Google Cloud services. Meta Inks Six-Year AI Cloud Deal With Google To Boost Llama Models The deal spans six years and is largely focused on AI infrastructure, reported CNBC, citing two people familiar with the matter. As per the report, the agreement reflects Meta's need for massive computing power as it scales its Llama family of open-source AI models and integrates generative AI across Facebook, Instagram and WhatsApp. The deal also marks a major win for Google Cloud as it seeks to catch up with larger competitors Amazon.com, Inc.'s AMZN Web Services and Microsoft Corporation's MSFT Azure. Earlier this year, Google also secured OpenAI as a customer, chipping away at Microsoft's dominant position in the AI cloud space. See Also: Elon Musk Loses $34 Billion As Tesla Sheds $153 Billion Amid Feud With Trump -- Here's How The Billionaire's Fortune Has Fared So Far In 2025 Zuckerberg-Led Meta's AI Spending Push, Google Gains Cloud Ground In its July earnings report, Meta projected total 2025 expenses between $114 billion and $118 billion, with a large portion allocated to AI infrastructure and talent. Alphabet reported in July that its Google Cloud unit generated $13.6 billion in second-quarter revenue, up from $10.35 billion year-over-year. Analysts say such mega-deals reinforce Google's bid to win more enterprise contracts and narrow the gap with AWS and Microsoft. From Fierce Rivals To Now Partners Meta and Google have been fierce competitors in online advertising, but Meta's growing AI ambitions require extensive cloud infrastructure. Zuckerberg's tech giant already runs its own data centers and has committed to leveraging cloud services from Amazon and Microsoft as well, the report said. Meta's cloud pact with Google comes as the company simultaneously partners with AWS on a $6 million startup program to expand Llama adoption. CEO Mark Zuckerberg has also created a superintelligence team, poaching top researchers from OpenAI and rivals. The company reportedly froze AI hiring following a surge in costly talent acquisitions. Price Action: Alphabet Inc.'s Class A shares rose 0.22% to $199.75 on Thursday, while Class C shares climbed 0.21% to $200.62. In contrast, Meta shares fell 1.15%, closing at $739.10, according to Benzinga Pro data. Benzinga's Edge Stock Rankings show that GOOG continues to exhibit a strong price trend across short, medium and long-term timeframes, with detailed performance metrics available here. Read Next: Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: 'Far From A Zero-Sum Game' Photo Courtesy: Koshiro K On Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$222.29-0.68%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum71.71Growth91.52Quality62.00Value50.84Price TrendShortMediumLongOverviewGOOGAlphabet Inc$201.400.60%GOOGLAlphabet Inc$200.600.64%METAMeta Platforms Inc$738.10-1.29%MSFTMicrosoft Corp$504.55-0.23%Market News and Data brought to you by Benzinga APIs

Meta signs over US$10 billion cloud deal with Google, source says

Google has struck a cloud computing deal with Meta Platforms worth more than US$10 billion, a source familiar with the matter told Reuters on Thursday. Under the agreement, Meta will use Google Cloud's servers, storage, networking and other services, the source added. Google and Meta did not immediately respond to requests for comment. The deal was first reported by the Information. The news comes after Meta CEO Mark Zuckerberg's comments in July that the company would spend hundreds of billions of dollars to build several massive AI data centers. In June, Reuters reported that OpenAI was planning to add Alphabet's Google Cloud service to meet its growing needs for computing capacity. Meta is seeking outside partners to help it fund the massive infrastructure needed to power AI by offloading $2 billion in data center assets, the company disclosed in a filing earlier this month.