Meta Platforms, the parent company of Facebook, has entered a six-year, $10 billion cloud computing agreement with Google. This marks Google’s second major cloud deal with a tech giant after OpenAI. Under the agreement, Meta will rely on Google Cloud’s infrastructure, including servers, storage, and networking, to support its AI-driven initiatives.
Meta CEO Mark Zuckerberg recently confirmed that the company plans to invest significantly in AI. He revealed that Meta would spend “hundreds of billions of dollars” on building AI data centers. In July, Meta raised its capital expenditure forecast for the year to $66-$72 billion, marking an increase of $2 billion. To ease financial strain, Meta is also looking to sell approximately $2 billion worth of data center assets.
Meanwhile, OpenAI, which is backed by Microsoft, has expanded its partnership with Google Cloud to meet its growing computing needs. Google Cloud has reported impressive growth, with a nearly 32% increase in revenue in the second quarter, exceeding market expectations. CEO Sundar Pichai attributed this growth to the platform’s openness and a strong supply of Nvidia GPUs and custom TPUs.
