Meta invests over $10bn in Google Cloud to boost AI capabilities

With this partnership, Meta will use Google Cloud’s servers, networking, storage, and related services to support its operations
An undated image. —  Canva
An undated image. —  Canva

In a bid to advance artificial intelligence (AI) capabilities, Meta Platforms has signed a six-year cloud computing deal with Google, valued at more than $10 billion.

With this partnership, Meta will use Google Cloud’s servers, networking, storage, and related services to support its operations.

According to The Information report, the deal has not yet been officially confirmed by either company.

The deal follows remarks from Meta CEO Mark Zuckerberg, who said in July that the company would invest hundreds of billions of dollars in building large-scale AI data centres.

Meta subsequently increased its 2024 capital expenditure forecast to between $66 billion and $72 billion, increasing the lower bound by $2 billion.

Previously this month, Meta also disclosed plans to offload $2 billion in data centre assets as it seeks external partners to share the burden of expanding its AI infrastructure.

This partnership adds to Google Cloud’s recent momentum, including its June agreement to provide infrastructure support for OpenAI.

That collaboration marked a surprising alliance between AI rivals and further established Google Cloud as a major provider for high-demand AI workloads.

Alphabet’s cloud division reported an almost 32% revenue increase in Q2, surpassing analyst expectations.