Meta Bets Big on Google’s Cloud to Fuel AI Ambitions

Meta Platforms Inc. has entered into a multi-year cloud computing agreement with Google parent Alphabet Inc., valued at over $10 billion, according to multiple sources familiar with the deal. Under the terms of the arrangement, Meta will leverage Google Cloud’s infrastructure, including servers, storage, and networking services, to support its expanding artificial intelligence (AI) initiatives. The Information first reported the deal, with additional confirmation coming from Reuters and other outlets. Google and Meta have not yet provided official statements.

The agreement spans six years, with Meta’s total expenses for 2025 projected to reach between $114 billion and $118 billion. A significant portion of these funds will be directed toward AI infrastructure, as Meta continues to build out its Llama series of large language models and integrate AI across its product ecosystem. This follows a broader strategy laid out by CEO Mark Zuckerberg, who has emphasized the development of AI "superintelligence" as a core objective for the company. In his most recent earnings call, Zuckerberg described the remainder of the decade as a transformative period for AI, with Meta’s focus centered on bringing advanced AI capabilities to its user base.

The partnership with Google represents a major win for Alphabet’s Google Cloud division, which has been actively seeking large-scale contracts to compete with rivals such as Amazon Web Services and Microsoft Azure. Alphabet recently reported second-quarter operating income of $2.83 billion for its cloud unit, with revenue reaching $13.6 billion—marking a 32% year-over-year increase. The Meta deal is among the largest in the 17-year history of Google Cloud and positions Alphabet to capture a significant share of the AI infrastructure market.

Meta’s move to outsource parts of its data center operations aligns with its broader financial strategy to reduce capital expenditures and offload infrastructure costs. Earlier this month, the company disclosed plans to divest $2 billion in data center assets as part of its efforts to streamline operations and focus on high-impact investments. This approach allows Meta to scale its AI infrastructure without the burden of full ownership, a critical factor in an industry where computing demands are rapidly outpacing traditional growth patterns.

The collaboration also reflects a shift in the competitive landscape among major tech companies. While Meta and Google have historically been rivals in areas such as online advertising, they are now aligning on AI infrastructure—a sector expected to see exponential investment in the coming years. OpenAI, another major player in AI, recently added Google Cloud to its infrastructure portfolio after previously relying heavily on Microsoft Azure. This trend highlights the growing importance of cloud computing in enabling the next wave of AI innovation and underscores the strategic value of partnerships between leading technology firms.

Google’s recent earnings report indicated that its cloud business is on track to generate $50 billion in revenue for the year, driven by strong demand across enterprise and AI sectors. The Meta deal not only reinforces this momentum but also positions Google to capitalize on the AI arms race, where computing capacity has become a critical bottleneck for many companies. With Meta’s stated goal of becoming a leader in AI superintelligence, the agreement with Google Cloud represents a foundational step in its long-term technological and strategic roadmap.

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 billion (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 Services Deal (https://www.investors.com/news/technology/meta-google-sign-10-billion-ai-cloud-services-deal/)

[4] Meta makes huge cloud computing deal with Google: source (https://finance.yahoo.com/news/meta-makes-huge-cloud-computing-012804330.html)