Meta Platforms has entered into a landmark six‑year cloud computing agreement with Google Cloud valued at more than $10 billion, sources familiar with the matter tell Reuters.
First reported by The Information, the deal positions Meta as one of Google Cloud’s largest customers and reinforces both companies’ roles in the fast‑evolving AI infrastructure race.
Under the terms of the agreement, Meta will leverage Google Cloud’s core infrastructure including servers, storage, networking, as well as other related services to bolster its artificial intelligence initiatives and meet soaring computational demands.
This move arrives amid Meta’s massive capital spending surge. In July, CEO Mark Zuckerberg revealed plans to invest hundreds of billions of dollars building AI data centers a commitment that contributed to raising its annual capital expenditure forecast to between $66 billion and $72 billion.
Analysts note the deal validates Google Cloud’s competitive positioning, particularly its pricing model, which has attracted major clients despite the dominance of AWS and Azure.
In fact, Bloomberg Intelligence signals that this agreement may enhance Meta’s ability to focus on improving capabilities of its Llama models, especially in reasoning, real‑time summarization, and language translation.
Financial implications extend beyond Meta alone. Google Cloud reported nearly 32 percent revenue growth during the second quarter, outperforming expectations and further demonstrating growing enterprise demand for cloud resources in AI workloads.
Meta’s pivot to include Google Cloud supplements its existing multi‑cloud strategy, which includes infrastructure from AWS, Microsoft Azure, Oracle, and CoreWeave.
The timing of this partnership underscores increasing collaboration among tech rivals, as organizations prioritize infrastructure scalability and speed in AI deployment.
For Meta, the agreement provides much‑needed elasticity while its new data centers are still under development. For Google, securing Meta as a client bolsters its institutional credibility and reinforces its ability to land marquee deals in a competitive market.
As the wider AI arena heats up, this deal may signal a turning point in how hyperscalers and tech giants align to meet unprecedented computational needs. Stakeholders will be watching closely as the collaboration unfolds over the coming years.
Written By Ian Maleve
