Meta Secures $10B Cloud Deal with Google Amid AI Infrastructure Push

Meta has inked a six-year, $10 billion cloud computing agreement with Google, marking a strategic shift despite their rivalry in digital advertising. The deal underscores Google Cloud's aggressive pursuit of enterprise clients as it competes with Amazon Web Services and Microsoft Azure. Earlier this year, Google similarly onboarded OpenAI as a client, despite the latter's deep ties to Microsoft's Azure platform.

Alphabet's cloud division reported $2.83 billion in operating income on $13.6 billion Q2 revenue, growing at 32% annually—more than double Alphabet's overall growth rate. The Meta partnership centers on AI infrastructure, coinciding with Meta's projected $114-$118 billion in 2025 expenses for AI development, including upgrades to its Llama models and AI integration across apps.

Meta continues diversifying its compute resources, maintaining existing agreements with Amazon and Microsoft while exploring asset sales to fund AI data centers. A recent filing revealed plans to divest $2 billion in data center assets, reflecting broader industry trends as tech giants realign infrastructure for generative AI demands.