Meta Strikes $10B Cloud Deal With Google to Power AI Ambitions

Meta Platforms has committed to a six-year, $10 billion cloud computing agreement with Google, marking the search giant's second major AI infrastructure deal following its recent partnership with OpenAI. The Facebook parent will leverage Google Cloud's servers, storage, and networking capabilities as it races to build out AI data centers capable of handling hundreds of billions in planned expenditures.

The deal surfaces as Meta increases its 2024 capital expenditure forecast to $66-$72 billion - a $2 billion upward revision at the low end. Company filings reveal parallel efforts to offload $2 billion in data center assets, suggesting strategic reallocation of resources toward AI infrastructure.

Google Cloud's momentum continues unabated, with the unit posting 32% year-over-year revenue growth last quarter. The Meta agreement follows June's revelation that OpenAI WOULD tap Alphabet's cloud services - an unlikely alliance between AI rivals that underscores the sector's insatiable demand for computing power.