On August 21, Reuters reported that Google is forming a significant contract with Meta Platforms worth over $10 billion, spanning six years. The details emerged from a source who requested anonymity, citing confidentiality.
This arrangement allows Meta to utilize a variety of Google Cloud services, including servers, storage, and networking capabilities. Both companies have yet to provide an official statement.
This partnership was initially highlighted by Information.
Recently, Meta’s CEO, Mark Zuckerberg, revealed intentions to invest hundreds of millions into developing multiple large AI data centers. This information came to light in July.
In light of recent filings, Meta is reportedly looking for external partners to assist in financing its AI infrastructure by selling off $2 billion worth of data center assets.
Meta has raised this $2 billion as it adjusts its projections for annual capital expenditures, moving from an estimate of $660 billion down to a range of about $72 billion last month.
Interestingly, in June, it was reported that OpenAI is also considering integrating Google Cloud Services to meet its computing demands. This points to a surprising collaboration among major players in the AI field.
In the midst of this, Google’s cloud division has shown impressive growth, recording nearly a 32% increase in revenue during the second quarter, as reported in July.
