Meta entered into a $10 billion entered into six-year cloud computing agreement with Google, according to a source familiar with the situation.
As part of this agreement, Meta will leverage Google Cloud’s servers, networking, storage, and associated services to enhance its operations. This deal, initially reported by The Information, has yet to receive official confirmation from either party. Both Meta and Google have chosen not to comment on the situation.
This agreement follows statements made by Meta CEO Mark Zuckerberg in July, where he indicated that the company plans to invest hundreds of billions of dollars in the development of large-scale AI data centers. Consequently, Meta has adjusted its 2024 capital expenditure forecast to a range between $66 billion and $72 billion, raising the lower limit by $2 billion.
Earlier this month, Meta also announced intentions to divest $2 billion in data center assets as it seeks external partners to alleviate the burden of expanding its AI infrastructure.
This collaboration contributes to Google Cloud’s recent growth, which includes a June agreement to offer infrastructure support for OpenAI. This partnership represented an unexpected alliance between AI competitors and further solidified Google Cloud’s position as a leading provider for high-demand AI workloads.
Alphabet’s cloud division reported nearly a 32% increase in revenue in Q2, exceeding analyst expectations. The Meta agreement could further enhance that growth trajectory.
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