Source: Meta strikes major cloud computing agreement with Google

Meta has struck a cloud computing deal with Google valued at more than $10 billion over six years, a source familiar with the agreement told AFP on Thursday.

The source confirmed a report from tech outlet The Information, noting that the arrangement involves Meta tapping into Google’s datacenter infrastructure, including servers, storage, networking, and related services. Meta itself declined to comment.

The deal comes as CEO Mark Zuckerberg ramps up spending on artificial intelligence, aggressively recruiting top researchers from rivals such as OpenAI and Apple with lucrative offers. He has described his ambition as building “AI superintelligence” for the public.

Meta’s push puts it in direct competition with other tech giants also investing heavily in AI. The deal is among the largest in Google Cloud’s 17-year history, the source said. Alphabet recently reported that its cloud business is on track to generate $50 billion this year.

Meta, meanwhile, reported strong second-quarter earnings, with capital expenditures soaring to $17 billion in the quarter—mostly for AI infrastructure. The company expects its total 2025 capital spending to fall between $66 billion and $72 billion.

Still, analysts warn that Meta’s big spending does not eliminate doubts about its long-term position in the AI race. “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,” said Emarketer analyst Minda Smiley.

In a recent strategy post, Zuckerberg suggested that the rest of the decade would be a transformative era for AI, with Meta’s central priority being to deliver advanced AI tools to its users.