The agreement marks the first time Meta will use Google Cloud for computing services.
Meta will pay $10 billion for Google Cloud services as part of a six-year deal, CNBC and Bloomberg reported late Thursday, citing unnamed sources.
The deal underscores Meta CEO Mark Zuckerberg’s push to expand artificial intelligence (AI) development. The social media giant is pushing updates to its Llama model, has recently launched a standalone Meta AI app, and has hired over 50 researchers and engineers in recent months for a new AI-focused team.
Zuckerberg has said AI development is the company’s top goal and pledged to spend billions of dollars.
In its second-quarter earnings report, Meta raised the lower end of its 2025 capex guidance to $66 billion from $64 billion, while maintaining the upper end at $72 billion.
The move is the largest deal between Meta and Google. Meta already operates over two dozen data centers and is actively building new ones.
It also marks a big win for Google Cloud, which ranks behind Amazon Web Services and Microsoft Azure in the cloud computing services market.
Alphabet’s share rose 0.4% in extended trading, following the news.
According to the Bloomberg report, this is the first time Google Cloud will be a cloud vendor to Meta, although the two companies have done smaller collaborations in the past.
In 2023, Google Cloud announced that it would make versions of Meta’s open-source AI model, Llama, available to developers through Vertex AI.
On Stocktwits, the retail sentiment for Meta and Alphabet has remained ‘bearish,’ unchanged for two weeks. Their shares are up 26.3% and 5.5%, respectively, year-to-date.
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