Meta and Google Strike $10B Cloud Deal to Power AI Ambitions

Meta Platforms has inked a landmark $10 billion cloud agreement with Alphabet's Google, securing six years of access to Google's infrastructure services. The deal underscores the growing convergence of hyperscale cloud computing and artificial intelligence development.

Google Cloud notches its largest contract to date, building on recent momentum after onboarding OpenAI as a client. The division's revenue surged 31% year-over-year to $13.6 billion last quarter, outpacing parent company Alphabet's overall growth.

While remaining competitors in digital advertising and VIRTUAL reality, the tech giants recognize shared infrastructure needs for AI development. The partnership reflects the capital-intensive nature of generative AI projects requiring massive compute resources.