Meta Platforms has signed a six-year cloud computing deal with Google, valued at more than $10 billion, according to a source familiar with the matter.
Under the agreement, Meta will utilize Google Cloud’s servers, networking, storage, and related services to support its operations. The deal, first reported by The Information, has not yet been officially confirmed by either company. Both Meta and Google declined to comment on the matter.
The deal follows remarks from Meta CEO Mark Zuckerberg, who said in July that the company would invest hundreds of billions of dollars in building large-scale AI data centers. Meta subsequently raised its 2024 capital expenditure forecast to between $66 billion and $72 billion, increasing the lower bound by $2 billion.
Earlier this month, Meta also disclosed plans to offload $2 billion in data center assets as it seeks external partners to share the burden of expanding its AI infrastructure.
This partnership adds to Google Cloud’s recent momentum, including its June agreement to provide infrastructure support for OpenAI. That collaboration marked a surprising alliance between AI rivals and further established Google Cloud as a major provider for high-demand AI workloads.
Alphabet’s cloud division reported an almost 32% revenue increase in Q2, surpassing analyst expectations. The Meta deal could further strengthen that growth trajectory.