Silicon Valley: Meta Platforms has reportedly struck a six-year cloud computing agreement with Google, worth more than $10 billion, a source familiar with the development confirmed.
The deal, first revealed by The Information, will see Meta rely on Google Cloud’s servers, networking, storage, and related infrastructure to power its expanding operations. While both Meta and Google have declined to comment, the agreement highlights the growing demand for cloud services as tech giants race to scale up artificial intelligence.
The timing is significant. In July, CEO Mark Zuckerberg announced Meta’s plan to pour hundreds of billions of dollars into building large-scale AI data centers. Shortly after, Meta raised its 2024 capital expenditure forecast to $66–72 billion, up from earlier guidance. The company has also begun selling off around $2 billion in data center assets to reduce costs and share infrastructure responsibilities with external partners.
For Google, the Meta contract adds to its momentum. Just in June, Google Cloud signed a surprising infrastructure deal with OpenAI, despite their rivalry in AI research. Alphabet’s cloud division has already posted nearly 32% revenue growth in Q2, and the Meta partnership could accelerate that trajectory.
If confirmed, this collaboration marks one of the largest cloud deals to date and a major step in reshaping the competitive AI landscape.
