Google, Meta Sign $10 Billion Cloud Deal, Second Big Agreement After OpenAI

Meta has signed a six-year cloud computing deal with Google worth over $10 billion, according to a source. The agreement will see Meta use Google Cloud's servers, storage, networking, and other services. This deal comes after Meta raised its annual capital expenditures forecast by $2 billion and is seeking outside partners to help fund its massive AI data center infrastructure. Google's cloud-computing unit reported a 32% jump in Q2 revenue, surpassing expectations.

Meta has signed a six-year cloud computing deal with Google worth over $10 billion, according to a source. The agreement will see Meta use Google Cloud's servers, storage, networking, and other services. This deal comes after Meta raised its annual capital expenditures forecast by $2 billion and is seeking outside partners to help fund its massive AI data center infrastructure. Google's cloud-computing unit reported a 32% jump in Q2 revenue, surpassing expectations.

The $10 billion, six-year cloud computing agreement between Google Cloud and Meta represents a significant shift in the AI infrastructure landscape. This partnership, the first of its kind for Google Cloud as a primary cloud vendor for Meta, underscores a broader industry transformation: the race to dominate AI-driven cloud infrastructure is accelerating, and Alphabet's strategic positioning could redefine its long-term shareholder value [2].

Meta's aggressive AI ambitions, led by CEO Mark Zuckerberg, require unprecedented computational power. The company has raised its 2025 capital expenditures to $66–72 billion, with a significant portion allocated to AI data centers and GPU resources. By partnering with Google Cloud, Meta is diversifying its cloud portfolio, reducing reliance on AWS and Azure, and securing a partner with cutting-edge AI research capabilities via DeepMind and TPU-powered solutions [2].

Google Cloud's Q2 2025 revenue surged 32% year-over-year to $13.6 billion, outpacing AWS's 17% growth and Azure's 26%. This performance reflects the unit's ability to capitalize on AI-driven demand, a trend that is expected to intensify as enterprises prioritize AI innovation [2].

For investors, the Google-Meta deal is a catalyst for long-term value creation. Alphabet's strategic investments in AI infrastructure, combined with its growing market share in cloud services, position it as a key beneficiary of the AI revolution. The company's ability to secure high-value clients like Meta and OpenAI demonstrates its competitive moat in a sector where infrastructure is becoming a bottleneck for innovation [2].

Meta's deal with Google is mainly around artificial intelligence infrastructure, said one of the people. Meta said in its earnings report last month that it expects total expenses for 2025 to come in the range of $114 billion and $118 billion. It's investing heavily in AI infrastructure and talent, building out its Llama family of models and adding AI across its portfolio of services [3].

Google declined to comment. Meta has largely been reliant on Amazon Web Services for cloud infrastructure though it also uses Microsoft Azure [3].

While AWS and Azure remain dominant, their growth rates are slowing compared to Google Cloud's. AWS's Q2 2025 revenue hit $30.9 billion, but its 17% growth lags behind Google's 32%. Microsoft, despite Azure's 26% growth, faces challenges in AI-specific infrastructure, where Google's TPU and DeepMind integration offer a unique edge [2].

Meta's robust second-quarter financial results, and significantly increased its capital expenditures to $17 billion in the quarter, primarily for AI infrastructure investments. Meta projected total 2025 capital spending between $66 billion and $72 billion [1].

A strong quarter "won't shield Meta from questions concerning the company's future as it breathlessly tries to keep up in the AI race," Emarketer analyst Minda Smiley said of the quarterly earnings [1].

References:
[1] https://m.economictimes.com/tech/technology/meta-signs-10-billion-plus-cloud-deal-with-google/articleshow/123443330.cms
[2] https://www.ainvest.com/news/google-10b-meta-cloud-deal-game-changer-ai-driven-cloud-growth-2508/
[3] https://www.cnbc.com/2025/08/21/google-scores-six-year-meta-cloud-deal-worth-over-10-billion.html