GOOGL: Meta Strikes $10 Billion Cloud Deal With Google to Support AI Expansion

Aug 22 - Meta Platforms META has entered into a six-year cloud services agreement with Google GOOGL valued at more than $10 billion, according to The Information.

The deal calls for Meta to tap Google Cloud's infrastructure, including servers, networking, storage, and related services. The move gives Meta immediate capacity to scale its artificial intelligence operations while the company continues building its own large-scale data centers, many of which remain years away from completion.

For Google, the agreement marks a significant gain in the cloud computing market, where it competes against Amazon Web Services, part of Amazon AMZN, and Microsoft's MSFT Azure. Landing Meta as a customer strengthens Google's position in the race for AI-focused cloud demand.

The collaboration indicates the evolution of the strategic approach by two traditional competitors in the field of online advertising. Met and Google are joining forces in AI infrastructure though they are fierce rivals in the digital ads.

Meta CEO Mark Zuckerberg recently outlined plans to commit hundreds of billions of dollars to data center expansion, making interim cloud partnerships an essential piece of its AI buildout strategy.