A source familiar with the situation said on Thursday that Google had reached a six-year cloud computing pact for over $10 billion with Meta Platforms. This is the search giant’s second significant deal in as many months, following its agreement with OpenAI.
Meta Signs $10 Billion Cloud Deal Google
According to the source, who wished to remain anonymous due to the confidentiality of the conversations, Meta will utilize Google Cloud’s servers, storage, networking, and other services as part of the arrangement.
Google and Meta did not immediately respond to requests for comment.
The Information was the first to report on the arrangement.
The announcement follows remarks made by Mark Zuckerberg, the CEO of Meta, in July that the business would invest hundreds of billions of dollars to construct many enormous AI data centers.
Last month, the business increased the lower end of its yearly capital expenditures projection by $2 billion, to a range of $66 billion to $72 billion.
In a filing earlier this month, Meta revealed that it is looking for outside partners to assist it in financing the enormous infrastructure required to support AI by selling off $2 billion in data center assets.
In an unexpected partnership between two major rivals in the artificial intelligence space, it was revealed in June that OpenAI intended to integrate Alphabet’s Google Cloud service to accommodate its expanding need for processing power.
In the midst of these transactions, Google parent company’s cloud computing division exceeded forecasts in July with a nearly 32% increase in second-quarter revenue.
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