Meta Strikes $10 Billion Cloud Deal With Google to Power AI Ambitions

Meta has signed a massive cloud computing agreement with Google valued at more than $10 billion over six years, a source familiar with the transaction confirmed on Thursday.

The deal, first reported by The Information and later confirmed to AFP, will see Meta rely on Google’s cloud infrastructure, including servers, storage, networking, and related services. Neither Meta nor Google provided official comment.

Fueling Zuckerberg’s AI Push

The move comes as Meta CEO Mark Zuckerberg ramps up spending on artificial intelligence, competing fiercely with OpenAI, Apple, and other tech giants. Meta has been aggressively hiring leading AI researchers with lucrative pay packages to build what Zuckerberg describes as “personal superintelligence for everyone in the world.”

In its latest earnings call, Meta reported robust financial results but also revealed a sharp rise in capital expenditures, reaching $17 billion in the second quarter of 2025, largely driven by AI infrastructure investments. The company projects total spending for the year between $66 billion and $72 billion.

A Landmark Deal for Google Cloud

For Google’s parent company Alphabet, the Meta deal ranks among the largest in the 17-year history of its cloud division. Alphabet recently disclosed that Google Cloud is on track to generate about $50 billion in annual revenue.

Industry analysts see the deal as a clear indication of how aggressively major tech companies are competing for dominance in AI. “A strong quarter won’t shield Meta from questions concerning the company’s future as it breathlessly tries to keep up in the AI race,” noted eMarketer analyst Minda Smiley.

AI Arms Race Intensifies

Meta’s partnership with Google underscores how much computing power is required to pursue breakthroughs in artificial intelligence. In a post outlining Meta’s AI strategy, Zuckerberg described the remainder of the decade as a transformative period for AI development, with the company’s top priority being to deliver AI-driven tools and experiences directly to its billions of users.