According to a source
Meta has signed a cloud computing contract with Google for over $10 billion over six years, a person familiar with the deal informed AFP Thursday.
The person affirmed a report from tech news site The Information of the agreement, under which Meta would utilize Google datacenter servers, storage, networking and other infrastructure.
Meta CEO Mark Zuckerberg has launched a wholesale artificial intelligence spending spree, recruiting top talent with lucrative pay packages from competitors such as OpenAI and Apple as he stocks up on talent to chase what he refers to as AI superintelligence.
“I’m looking forward to creating personal superintelligence for the world,” Zuckerberg said in an earnings conference call late last month.
Meta is in a bitter battle with other technology giants as they spend billions on AI.
The Meta deal is one of the largest in Google’s cloud division’s 17-year history, the source said.
Google parent Alphabet’s cloud computing division was tracking to record $50 billion for the year, the company reported in a recent earnings statement.
Meta also posted strong second-quarter financials, and sharply stepped up capital spending to $17 billion in the quarter, mainly for investments in AI infrastructure.
Meta estimated full-year 2025 capital spending of $66 billion to $72 billion.
A solid quarter “won’t insulate Meta from questions about the future of the company as it breathlessly scrambles to keep pace in the AI race,” Emarketer analyst Minda Smiley said in the quarterly earnings.
In a blog post detailing Meta’s AI vision, Zuckerberg has indicated that the rest of the decade would be a revolutionary era for the development of artificial intelligence and that priority for the company was to deliver AI to its users.