Google has entered into a six-year cloud computing agreement with Meta Platforms valued at more than $10 billion, a source familiar with the matter disclosed on Thursday.
Under the deal, Meta will use Google Cloud’s servers, storage, networking, and related services to strengthen its infrastructure. Both companies have yet to issue official statements, while The Information was the first to report the development.
The agreement is Google’s second major cloud partnership in recent months, following a similar arrangement with OpenAI.
Meta CEO Mark Zuckerberg announced in July that the company planned to invest hundreds of billions of dollars in building large-scale AI data centres. The company has since raised the lower end of its 2024 capital expenditure forecast by $2 billion, setting it at between $66 billion and $72 billion.
To support its growing artificial intelligence ambitions, Meta has also sought external partnerships to fund infrastructure. Earlier this month, the company revealed in a regulatory filing that it intends to sell $2 billion worth of data centre assets to raise capital.
In June, reports indicated that OpenAI was preparing to integrate Google Cloud services to support its rising computing needs, highlighting new collaborations between rivals in the AI industry.
Google’s cloud unit has continued to show strong performance, with second-quarter revenue climbing nearly 32 per cent in July, exceeding market expectations.
