Meta and Google Strike Historic $10B Cloud Deal to Fuel AI Ambitions

Meta Platforms has signed a $10 billion cloud deal with Alphabet's Google to power its AI ambitions. The six-year deal will see Meta use Google's cloud servers, storage, and networking services. This represents a historic win for both companies, marking Google's largest cloud deal in history and solidifying its position in the enterprise cloud market. Meta's investment in AI is expected to continue, with plans to invest "hundreds of billions of dollars" to accelerate its efforts.

Meta Platforms Inc. (META) has signed a $10 billion cloud computing deal with Alphabet Inc.'s (GOOG) Google, marking a significant milestone in both companies' growth strategies. This six-year agreement will see Meta leverage Google Cloud's servers, storage, and networking services to accelerate its AI initiatives, particularly in scaling its Llama family of open-source AI models and integrating generative AI across Facebook, Instagram, and WhatsApp [1].

The deal, reported by CNBC and Reuters, is a major win for Google Cloud, which seeks to narrow the gap with larger competitors such as Amazon.com Inc.'s (AMZN) Web Services and Microsoft Corporation's (MSFT) Azure. This collaboration comes amidst Meta's aggressive push to invest in AI, with the company projecting total 2025 expenses between $114 billion and $118 billion, a significant portion of which is allocated to AI infrastructure and talent [1].

Meta's growing AI ambitions necessitate extensive cloud infrastructure, and this deal represents a strategic move to offload some of the company's data center assets. The deal also reflects Meta's broader strategy to partner with various cloud providers, including AWS and Microsoft, to meet its AI infrastructure needs [1].

Google Cloud has previously worked with Meta, notably in distributing versions of Meta's open-source AI model, Llama, through its Vertex AI platform. This new deal further cements Google's position as a flexible, "one-stop shop" for AI services, validating its lower token pricing compared to other hyperscalers [3].

The deal comes at a critical time for both companies. Meta, under the leadership of CEO Mark Zuckerberg, has pledged to invest hundreds of billions of dollars in AI and infrastructure. Google, on the other hand, is seeking to secure more enterprise contracts and solidify its position in the competitive cloud computing market [2].

In terms of market impact, Google shares rose slightly following the announcement, while Meta shares experienced a minor decline. The deal underscores Google's growing influence in the AI cloud space and Meta's commitment to leveraging external partners to fuel its AI ambitions [1].

References:
[1] https://www.benzinga.com/markets/tech/25/08/47274211/mark-zuckerbergs-meta-strikes-10-billion-cloud-pact-with-google-to-power-ai-ambitions-despite-tech-rivalry-report
[2] https://www.communicationstoday.co.in/meta-signs-over-10b-cloud-deal-with-google/
[3] https://www.bloomberg.com/news/articles/2025-08-22/meta-signs-10-billion-google-cloud-computing-deal-amid-ai-race