A source close to the arrangement told AFP Thursday that Meta and Google have reached a cloud computing agreement worth over $10 billion over six years.
The deal will involve Meta employing Google datacenter servers, storage, networking, and other services, according to a story published by tech news portal The Information.
Meta chose not to respond.
As he assembles a team to explore what he refers to as AI superintelligence, Mark Zuckerberg, the CEO of Meta, has gone on a massive artificial intelligence spending binge, luring prominent researchers with lavish compensation packages from competitors like Apple and OpenAI.
“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.
*
Email *
Website
