Meta Bets Big on AI—Leveraging Google Cloud for $10B Push

Meta has entered a multi-year cloud computing agreement with Google, valued at over $10 billion, according to multiple sources familiar with the deal. The six-year contract will see Meta utilizing Google Cloud’s infrastructure—including servers, storage, and networking—to support its artificial intelligence (AI) initiatives. The information was first reported by The Information and later confirmed by Reuters and other outlets. Neither Meta nor Google has publicly commented on the agreement, but the deal reflects a broader strategy by Meta to secure robust cloud infrastructure to support its growing AI ambitions.

This deal follows Meta CEO Mark Zuckerberg’s recent remarks that the company plans to invest hundreds of billions in AI data centers. The agreement with Google Cloud is part of Meta’s broader approach to offloading some infrastructure costs by leveraging third-party cloud providers. Earlier this month, Meta disclosed plans to divest $2 billion in data center assets to help fund its AI expansion. The move comes as Meta increasingly partners with external cloud services, having previously committed to Amazon and Microsoft. The decision to include Google Cloud in its infrastructure strategy suggests a shift toward diversifying its cloud vendor base to meet the massive computational demands of AI development.

Google Cloud’s recent gains in securing high-profile cloud contracts indicate a broader strategy to challenge Amazon Web Services and Microsoft Azure. Earlier in 2025, Google won cloud business from OpenAI, another major player in the AI space, which previously relied heavily on Microsoft’s Azure platform. Alphabet reported in July that the Google Cloud unit generated $13.6 billion in revenue during the second quarter, with a 32% year-over-year revenue increase. The Meta deal is expected to further bolster Google Cloud’s financial performance and expand its footprint in the AI infrastructure market.

Meta’s 2025 spending plans include AI as a central focus, with total expenses projected between $114 billion and $118 billion for the year. The company is building out its Llama series of AI models and integrating AI across its platforms. Despite the aggressive investment, Meta has recently paused hiring in its AI research team. This decision follows a period of rapid expansion, where the company aggressively recruited top AI talent from competitors like OpenAI, Anthropic, and Google. The hiring freeze, confirmed by the Wall Street Journal, reflects a reevaluation of its AI strategy, including a restructuring of its Superintelligence Lab into smaller, more focused teams. The restructuring aligns with Zuckerberg’s evolving views on AI development, which now emphasize smaller, more agile teams.

The deal with Google Cloud underscores the competitive landscape in cloud infrastructure as AI development becomes a central driver of tech investment. With AI infrastructure costs rising, companies like Meta are turning to cloud partners to scale their operations efficiently. The strategic collaboration between Meta and Google Cloud could set a precedent for similar partnerships in the industry, particularly as cloud providers compete to capture a larger share of the AI infrastructure market.

Source:

[1] Meta signs over $10 billion cloud deal with Google, source says (https://www.reuters.com/business/meta-signs-over-10-billion-cloud-deal-with-google-source-says-2025-08-21/)

[2] Google scores six-year Meta cloud deal worth over $10 (https://www.cnbc.com/2025/08/21/google-scores-six-year-meta-cloud-deal-worth-over-10-billion.html)

[3] Meta, Google Reportedly Sign $10 Billion AI Cloud (https://www.investors.com/news/technology/meta-google-sign-10-billion-ai-cloud-services-deal/)

[4] Meta puts the brakes on its massive AI talent spending spree (https://www.cnbc.com/2025/08/21/meta-brakes-massive-ai-talent-recruitment-spree-mark-zuckerberg-tbd-superintelligence-lab.html)

[5] Meta implements hiring freeze after splitting up its AI (https://mashable.com/article/meta-hiring-freeze-splitting-up-ai-superintelligence-team)