Key points
- Meta will utilize Google Cloud’s infrastructure for computing needs. The deal is valued at over $10 billion.
- The agreement includes server, storage, and networking services.
- This follows Meta’s announcement of substantial AI data center investment.
- The partnership helps Meta offset the massive costs of its AI infrastructure.
Meta Platforms (META.O) and Google (GOOGL.O) have entered into a landmark cloud computing agreement exceeding $10 billion, according to a source familiar with the matter. This significant partnership will see Meta leverage Google Cloud’s extensive network of servers, storage solutions, and networking capabilities to power its operations.
The deal represents a substantial commitment from Meta to outsource a significant portion of its computing infrastructure needs. Neither company has yet publicly confirmed the deal, though The Information initially reported it.
This collaboration comes on the heels of Meta CEO Mark Zuckerberg’s July announcement detailing plans to invest hundreds of billions of dollars in constructing multiple massive AI data centers. This substantial investment underscores Meta’s aggressive pursuit of advancements in artificial intelligence and the immense computational resources required to support such endeavors.
The partnership with Google Cloud provides a strategic solution for Meta, allowing them to access readily available and scalable infrastructure rather than solely relying on internal development.
The move to partner with Google Cloud also aligns with Meta’s recent financial disclosures. Earlier this month, the company revealed plans to offload approximately $2 billion in data center assets, indicating a proactive approach to managing the substantial costs associated with its rapidly expanding AI ambitions. This strategy of partnering with external providers for infrastructure allows Meta to focus its internal resources on software development and AI innovation.
The agreement signifies a major victory for Google Cloud, further solidifying its position as a leading provider of cloud computing services to major tech companies.
The deal follows a similar agreement between Google Cloud and OpenAI, demonstrating the growing demand for robust and scalable cloud infrastructure to support the ever-increasing computational needs of the burgeoning AI landscape. This partnership is likely to shape the future of cloud computing and the AI industry.
