Meta Inks $10 Billion Cloud Deal with Google to Boost AI Capabilities

Meta's AI Push Leads to $10 Billion Google Cloud Deal, Report Says

According to Bloomberg, Meta will pay at least $10 billion over six years to use Google Cloud servers and storage to expand its AI capabilities. Eager to establish dominance in artificial intelligence, Meta has signed up to use cloud-computing services from Google Cloud in a deal worth at least $10 billion over six years, according to a report from Bloomberg. The deal would expand Meta's capabilities as it continues to push into AI tools and services across its platforms, including Facebook, Instagram and WhatsApp. AI requires an enormous amount of computing resources, which requires more data center bandwidth. In turn, those data centers need an increasing amount of electricity and water to run and cool the hardware inside. Meta is also spending big to build its own AI data centers, including a 4-million-square-foot facility in Louisiana, called Hyperion, which it plans to open by 2030. Representatives for Google and Meta didn't immediately respond to emails seeking confirmation of the report. In recent months, Meta has been on a hiring spree to the tune of hundreds of millions of dollars in an effort to hire a superstar team to work on its AI projects, including its Llama AI platform. Recently, though, reports suggest that AI-related hiring may be paused as the company reevaluates its artificial intelligence strategy. Meta continues to roll out new AI tools and features regardless, including AI translations for Facebook and Instagram. Meanwhile, a deal with Meta could give Google Cloud a boost as what Bloomberg describes as a "one-stop shop" for AI services. In June, OpenAI joined forces with Google Cloud to use its data centers.

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 clinches mega $10 billion cloud deal with Google

Meta has agreed to spend at least $10 billion on Google Cloud services in a six-year deal, marking the first major cloud deal between the two giants. The reports, according to two people familiar with the matter, suggest Meta could use Google Cloud servers and storage for its AI infrastructure, despite investing in its own data centers. However, CEO Mark Zuckerberg's grand plans to deliver maximum computing power to every AI researcher means that the company can't keep up with its own expansion, drawing on the experience of others. Despite having over 20 data centers in its existing portfolio (and more under construction), Meta needs to draw on this external capacity for its short-term plans, but the move is not unheard of even from Meta. The social networking giant already uses AWS and Microsoft Azure, so Google just adds to its multicloud strategy. Google Cloud also previously partnered with Meta by hosting Llama models on Vertex AI. Google lags way behind Amazon and Microsoft in third place in the cloud market tables, but this didn't stop it winning a big OpenAI contract earlier in 2025 as the ChatGPT maker looks to diversify beyond its earlier heavy Microsoft investments. Google Cloud generated $13.6 billion in the company's second quarter, marking a considerable 32% year-over-year increase compared with the 14% increase seen by the company as a whole. Looking ahead, Meta's projected expenses for 2025 could reach $118 billion, with a large chunk dedicated towards the company's AI efforts. It saw a healthy 22% rise in revenue during its second quarter, which is roughly how much its 2025 expenses could rise by. Still, despite Meta's AI plans, overall headcount at the end of its second quarter was 7% higher than Q2 2024, at nearly 76,000. TechRadar Pro asked Google and Meta to share more details, but neither has responded at the time of going to press.

Meta makes huge cloud computing deal with Google: source

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 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 Strikes $10 Billion Cloud Deal with Google | AIM

Meta also lifted its capital expenditure guidance last month, raising the lower end of its forecast by $2 billion. Meta has signed a six-year cloud computing agreement with Google, valued at more than $10 billion, The Information has reported. The deal, which covers servers, storage, networking and other services, marks Google Cloud's second major win in recent months following its agreement with OpenAI. The partnership comes at a time when Meta is rapidly scaling its AI infrastructure. In July, CEO Mark Zuckerberg announced that the company would invest "hundreds of billions of dollars" in building massive AI-focused data centres. Earlier this year, Meta disclosed plans to offload $2 billion worth of data centre assets to external partners to help finance the effort. Meta also lifted its capital expenditure guidance last month, raising the lower end of its forecast by $2 billion to between

Reports: Meta signs $10bn deal to use Google cloud

Meta said that it expects to spend up to $118bn this year as it ramps up AI-related investments. Meta will be paying more than $10bn to use Google's cloud services for six years, news outlets reported yesterday (21 August). Sources told outlets that the Facebook owner's deal with Google Cloud is primarily around artificial intelligence infrastructure. Meta has been on a spending spree, investing heavily in AI infrastructure while poaching key talent from rival AI companies as it builds its new Superintelligence Labs. The company said it expects to spend up to $118bn this year. It signalled that its AI-related expenses would increase into 2026. While for cloud providers, the AI boom has been greatly beneficial for sales. According to Google, 90pc of generative AI unicorns use its cloud services. Its second quarter earnings showed Cloud revenue up by 32pc year on year, reaching more than $13.6bn. This, it says was led by a growth, among other things, in AI infrastructure and GenAI solutions. Google is competing with the likes of Microsoft, whose Intelligent Cloud unit, which houses Azure, earned $26.8bn according to its latest results. While Amazon Web Services' revenue for the second quarter totalled around $30bn and Oracle Cloud services and license support revenue was up 14pc to $11.7bn in the quarter past. Google's cloud unit has garnered much attention in recent months as a crucial growth target for the company, especially as antitrust actions threaten the company's search-based ad empire. While it is unlikely that Google will divest from Chrome, companies have already offered to purchase the browser, with proposals coming in from Perplexity and OpenAI. Google cloud suffered a major outage in June, which affected a range of its services such as Gmail and Google Drive, as well as prominent customers including OpenAI, Cloudflare, Shopify and Spotify. It took the company nearly four hours to recover services. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Meta reportedly inks $10B+ cloud deal with Google - SiliconANGLE

Meta Platforms Inc. has reportedly signed a cloud deal with Google LLC that will be worth more than $10 billion over six years. Sources told Reuters on Thursday that the agreement encompasses servers, storage, networking and "other services." The deal comes weeks after Meta announced plans to spend hundreds of billions of dollars on artificial intelligence infrastructure. As part of the project, the Facebook parent will build a network of data centers that are each expected to consume multiple gigawatts of power. If the agreement with Google is intended to support Meta's AI efforts, a sizable portion of the $10 billion budget could go toward machine learning accelerators. The Alphabet Inc. unit offers both Nvidia Corp. graphics cards and custom AI chips. Google's latest internally developed AI accelerator, Ironwood, debuted in April. It offers double the performance per watt of its predecessor. The speed increase is partly the result of upgrades to the onboard memory. According to Google, its engineers expanded the processor's HBM pool sixfold and more than quadrupled the speed at which it can retrieve data for AI models. Ironwood is deployed in clusters with up to 9,216 chips. The accelerators exchange data using a custom interconnect, the Inter-Chip Interconnect, that Google says is 50% faster than the one it developed for its previous-generation AI chips. Google Cloud also offers Nvidia's latest Blackwell B200 graphics cards. In February, the company debuted an instance series that combines 72 B200 chips with 32 central processing units. The underlying servers are supported by custom liquid cooling equipment. A Google-developed network adapter, Titanium ML, processes traffic between instances. Meta previously inked cloud agreements with Amazon Web Services Inc. in 2021 and Microsoft Corp. in 2022. When the deals were announced, the Facebook parent stated that it was planning to use the companies' public clouds to support its AI research. The Azure contract gave it access to 5,400 Nvidia graphics cards. Meta's cloud partnerships with AWS and Microsoft both included joint engineering initiatives. In particular, it teamed up with the companies to optimize PyTorch for their respective public clouds. PyTorch is a popular open-source AI development tool that Meta released in 2016. It's unclear whether the reported deal with Google includes a similar engineering collaboration. The Alphabet Inc. unit is the creator of TensorFlow, the most popular open-source alternative to PyTorch. It's also Meta's largest competitor in the online advertising market.

Google Lands $10 Billion-Plus Cloud Deal With Meta Focused on AI, Reports Say

Google reportedly struck a cloud deal in June with OpenAI, which had earlier relied on Microsoft's Azure infrastructure. Meta Platforms (META) has reportedly agreed to spend more than $10 billion on cloud services from Google, as the search giant seeks to catch up with larger rivals in the space, namely Amazon Web Services and Microsoft Azure. The deal struck by Alphabet's (GOOGL) Google spans six years, according to CNBC. The Information had reported the news earlier. CNBC said, citing a person familiar with the matter, that "Meta's deal with Google is mainly around artificial intelligence infrastructure." Google's cloud business has been booming. In July, Alphabet said its second-quarter Google Cloud revenue jumped 32% year-over-year to $13.62 billion, as the tech giant posted quarterly results that topped estimates. In June, Google reportedly won a contract from ChatGPT developer OpenAI, which had earlier relied on Microsoft's (MSFT) Azure infrastructure. Meta and Google didn't immediately respond to requests for comment.

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.

Meta inks £10 billion cloud deal with Google

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Meta will pay $10 billion over six years to use Google Cloud to power AI tools. This is in line with Meta CEO Mark Zuckerberg's plan to hyperscale AI infrastructure. The deal is the first major cloud computing deal between the two tech giants, ranking third after Amazon's AWS and Microsoft's Azure, according to The Information who first reported the news. Google has confirmed the deal, and Meta has not provided a comment. Previously, Google Cloud partnered with Meta for AI model Llama that launched in 2023.

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.

Meta signs $10 billion cloud deal with Google

Aug 21 (Reuters) - Google has struck a six-year cloud computing deal with Meta Platforms worth more than $10 billion, a source familiar with the matter told Reuters on Thursday, the search giant's second big agreement recently after one with OpenAI. Under the agreement, Meta will use Google Cloud's servers, storage, networking and other services, the source, who asked not to be named because the discussions are confidential, said. 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. The company raised the bottom end of its annual capital expenditures forecast by $2 billion, to a range of $66 billion to $72 billion last month. 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. In June, Reuters reported that OpenAI was planning to add Alphabet's Google Cloud service to meet its growing needs for computing capacity, a surprising collaboration between two prominent competitors in the artificial intelligence sector. Amid this flurry of deals, Google parent's cloud-computing unit delivered an almost 32% jump in second-quarter revenue in July, which surpassed expectations.

Meta signs cloud contract worth over $10bn with Google

Meta has signed a major agreement with Alphabet to use its cloud services, worth more than $10bn over six years. This move reflects the explosion in computing power requirements for artificial intelligence and Mark Zuckerberg's desire to diversify his technological support. Until now, Meta has relied primarily on Amazon Web Services, supplemented by Microsoft Azure. But the rise of its Llama AI models and their integration into Facebook, Instagram, and WhatsApp require a massive and flexible infrastructure. The deal is said to focus primarily on Google's cloud AI and is part of Meta's colossal spending, estimated at between $114bn and $118bn this year. For Google, this commitment is a strategic victory in a cloud war where Amazon and Microsoft remain dominant. Its Google Cloud division generated $13.6bn in revenue in Q2 (up 32% y-o-y), but is still struggling to catch up in terms of market share. Fierce rivals in digital advertising, Meta and Google find themselves allies of convenience: faced with exponential demand for AI, the giants are banking on cooperation to secure their technological lead and absorb ever-increasing computing costs.