Meta Platforms Inc. has entered into a cloud computing agreement with Alphabet Inc.'s Google Cloud valued at over $10 billion, spanning six years. Under the deal, Meta will utilize Google Cloud's servers, storage, networking, and other cloud services, primarily to support its growing artificial intelligence infrastructure needs, including the scaling of its Llama AI models and integration of generative AI across its platforms such as Facebook, Instagram, and WhatsApp. This partnership marks one of the largest contracts in Google Cloud's history and represents a strategic collaboration between two companies that also compete in digital advertising. The agreement underscores Meta's increased capital expenditure forecast, which could reach up to $72 billion in 2025, largely directed toward AI development. The deal is viewed as a major win for Google Cloud, enhancing its position in the enterprise cloud market amid intensifying competition in AI infrastructure.
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Meta commits $10B to Google Cloud for AI https://t.co/3GPvXACWtj
Trillions of dollars’ worth of investment for $18.5 billion in annualized revenue. cc: The Information https://t.co/zlW1obclZn