Meta Signs $10B Six-Year Google Cloud AI Deal
Meta Signs $10B Six-Year Google Cloud AI Deal

Meta Signs $10B Six-Year Google Cloud AI Deal

News summary

Meta Platforms has signed a landmark six-year cloud computing deal with Google worth at least $10 billion, marking the first major cloud infrastructure agreement between the two tech giants. This partnership will enable Meta to use Google Cloud's servers, storage, networking, and other services to rapidly expand its AI capabilities amid a competitive market. CEO Mark Zuckerberg has emphasized AI development as Meta's top priority, pledging billions of dollars in spending and recently increasing the company’s capital expenditure guidance to between $66 billion and $72 billion by 2025. While Meta operates over two dozen data centers and is constructing more, the Google Cloud deal allows the company to accelerate AI infrastructure deployment without waiting for new data centers to come online. The collaboration also builds on previous smaller partnerships, such as Google Cloud hosting Meta’s open-source Llama AI model via its Vertex AI platform. The deal strengthens Google Cloud’s position in the cloud services market, where it ranks behind Amazon Web Services and Microsoft Azure.

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