20 Dec 2025, Sat

Meta Signs $10 Billion Cloud Deal with Google to Boost AI Infrastructure

Meta Platforms has entered into a six-year cloud computing agreement with Google, valued at more than $10 billion, marking one of the largest cloud partnerships in recent years.

According to reports, the deal will allow Meta to rely on Google Cloud’s servers, networking, storage, and advanced infrastructure services to strengthen its global operations and support its rapidly expanding AI initiatives. Although the agreement has not been officially confirmed, sources familiar with the matter suggest the deal was finalized earlier this week. Both companies have so far declined to comment.

Why This Deal Matters

Meta CEO Mark Zuckerberg recently announced plans to invest hundreds of billions of dollars in building large-scale AI data centers. In line with this vision, Meta revised its 2024 capital expenditure forecast to between $66 billion and $72 billion, raising the lower bound by $2 billion.

To ease the financial burden, Meta has also disclosed plans to offload $2 billion worth of data center assets to external partners. Partnering with Google Cloud provides Meta access to the computing power and scalability needed to compete in the global AI race, especially against tech rivals like Microsoft and Amazon.

Google Cloud’s Growing Influence

For Google, the deal highlights the surging demand for cloud services fueled by artificial intelligence. Alphabet’s cloud division reported a nearly 32% revenue increase in Q2 2025, surpassing Wall Street expectations.

Earlier in June, Google Cloud also secured a major collaboration with OpenAI, an unexpected partnership given the rivalry between the two companies. Adding Meta to its client list further solidifies Google Cloud’s position as a top provider for high-demand AI workloads.

What’s Next?

Industry experts believe this deal could reshape the AI infrastructure market, driving even more competition among major cloud providers. For Meta, this move signals a long-term commitment to scaling its AI ecosystem and advancing technologies in virtual reality, generative AI, and metaverse development.

If officially confirmed, the Meta-Google partnership will stand as one of the most significant cloud deals of the decade, reflecting how big tech companies are doubling down on AI-driven growth.

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