Meta signs cloud deal with Google worth over $10 billion, source says

Meta signs cloud deal with Google worth over $10 billion, source says

In a significant move that underscores the growing importance of cloud computing in the tech industry, Meta Platforms (META.O) has struck a cloud computing deal with Google (GOOGL.O) worth more than $10 billion, according to a source familiar with the matter [1]. The agreement, which was first reported by The Information, will see Meta utilizing Google Cloud's servers, storage, networking, and other services.

The deal comes at a critical juncture for Meta, which has been investing heavily in AI and data centers. In July, Meta CEO Mark Zuckerberg announced plans to spend hundreds of billions of dollars to build several massive AI data centers. Additionally, Meta has been seeking outside partners to help fund the infrastructure needed to power AI by offloading $2 billion in data center assets [1].

The collaboration between Meta and Google is notable for several reasons. First, it highlights the strategic importance of cloud infrastructure in the tech industry. Second, it underscores the willingness of tech giants to collaborate despite being competitors in other areas, such as digital advertising. This trend is not new, as seen in Tesla's development of a real-world AGI blueprint and its consideration of a smaller Cybertruck model, both of which demonstrate adaptability and product diversification [2].

Moreover, this deal is part of a broader trend of tech giants turning to nuclear energy to power their data centers. Google, for instance, has entered an agreement with Kairos Power and the Tennessee Valley Authority to help power its operations and growing data centers with zero-emissions energy from an advanced fourth-generation nuclear reactor [3]. This move aligns with Google's pledge to triple global nuclear energy capacity by 2050 and supports the broader push towards decarbonization in the tech industry.

The implications of this deal are significant. For Meta, it provides a robust infrastructure to support its AI initiatives and data center needs. For Google, it reinforces its growing influence in the cloud computing space and demonstrates its commitment to sustainability. The deal also signals the importance of strategic alliances and infrastructure innovation in shaping the technology landscape.

References:
[1] https://www.reuters.com/business/meta-signs-over-10-billion-cloud-deal-with-google-source-says-2025-08-21/
[2] https://tradersunion.com/news/market-voices/show/451888-google-meta-cloud-deal/
[3] https://www.esgdive.com/news/google-kairos-power-deal-aims-for-tennessee-nuclear-reactor-by-2030-tva-ai-data-center-demands/758303/