Google has signed a six-year cloud computing agreement with Meta Platforms valued at more than $10 billion, according to a source familiar with the matter. This marks Google’s second major deal in a short span, following a recent agreement with OpenAI.
Under the contract, Meta will rely on Google Cloud’s infrastructure, including servers, storage, networking, and related services. The deal highlights Meta’s ongoing efforts to expand its artificial intelligence capabilities, after CEO Mark Zuckerberg announced in July that the company would allocate hundreds of billions of dollars to develop large-scale AI data centers.
Meta recently increased its annual capital expenditure forecast to between $66 billion and $72 billion and revealed plans to offload $2 billion in data center assets by partnering with external firms. Meanwhile, Google Cloud reported a 32% revenue increase in the second quarter, exceeding expectations, as demand for AI infrastructure continues to rise.
The agreement also underscores a trend of unexpected collaborations in the AI sector, such as OpenAI’s reported plan to integrate Google Cloud services despite their competition.
Join our signal room and start receiving expert trading signals for free! Get insights and strategies to enhance your trading experience.
