Meta Strikes $10 Billion Cloud Deal With Google Amid AI Expansion

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Meta Strikes $10 Billion Cloud Deal With Google Amid AI
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. FABRICE COFFRINI/AFP via Getty Images/Getty Images

Meta has agreed to spend more than $10 billion on a new six-year cloud computing deal with Google, a source familiar with the matter told Reuters on Thursday.

This marks a major partnership between two tech giants as Meta expands its artificial intelligence (AI) efforts.

Under the agreement, Meta will use Google Cloud's servers, storage, networking, and other cloud services to support its growing AI infrastructure.

The deal highlights Meta's commitment to building massive AI data centers, as CEO Mark Zuckerberg announced in July.

He revealed that the company plans to invest hundreds of billions of dollars in AI technology and infrastructure over the coming years.

Meta recently raised its annual capital expenditures forecast by $2 billion, pushing the expected spending range to between $66 billion and $72 billion for 2025, Reuters said.

To help fund this, Meta is also seeking partners to share some of its data center assets, as revealed in a recent company filing.

Google Cloud Revenue Jumps 32% Amid Big AI Contracts

The new deal with Google follows a similar contract between Google and OpenAI, another leader in AI technology.

OpenAI also chose Google Cloud to meet its increasing computing needs, signaling a surprising collaboration between competitors in the AI space.

Google Cloud's business is growing rapidly. According to CNBC, in the second quarter of 2025, the cloud unit posted $13.6 billion in revenue and a 32% jump from the previous year, far outpacing the overall growth of its parent company, Alphabet.

Google is competing strongly against rivals Amazon Web Services and Microsoft Azure to land large cloud contracts.

Meta has teamed up with Google to strengthen its AI infrastructure, a key part of its long-term game plan.

The company is investing heavily in projects like its Llama AI models and finding new ways to bring the technology into its apps and platforms.

Looking ahead to 2025, Meta says it will spend between $114 billion and $118 billion, with a large share set aside for AI talent and development.

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Meta, Google

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