Meta signs $10B cloud computing deal with Google
What's the story
Meta has signed a six-year cloud computing contract with Google, worth over $10 billion. The deal is one of the largest in Google's cloud division's history and will see Meta use Google's data center servers, storage, networking, and other services. The agreement comes as part of Meta's major push into artificial intelligence (AI), including expanding its infrastructure and acquiring talent.
AI ambitions
Mark Zuckerberg's AI spending spree
Meta CEO Mark Zuckerberg has been on a major AI spending spree, hiring top researchers from competitors like OpenAI and Apple. He envisions building "personal superintelligence" for everyone in the world. The deal with Google will help Meta expand its AI infrastructure as it competes with other tech giants in this space.
Business growth
Google's cloud business and Meta's capital expenditures
Google's parent company Alphabet reported that its cloud computing business was on track to generate $50 billion this year. Meanwhile, Meta also posted strong second-quarter results and significantly increased its capital expenditures to $17 billion in the quarter, mainly for AI infrastructure investments. The company expects total 2025 capital spending between $66 billion and $72 billion.