Meta signs over US$10 billion cloud deal with Google, source says

The Meta logo is seen at the Vivatech show in Paris, France, June 14, 2023. (AP Photo/Thibault Camus)

Google has struck a cloud computing deal with Meta Platforms worth more than US$10 billion, a source familiar with the matter told Reuters on Thursday.

Under the agreement, Meta will use Google Cloud’s servers, storage, networking and other services, the source added.

Google and Meta did not immediately respond to requests for comment.

The deal was first reported by the Information.

The news comes after Meta CEO Mark Zuckerberg’s comments in July that the company would spend hundreds of billions of dollars to build several massive AI data centers.

In June, Reuters reported that OpenAI was planning to add Alphabet’s Google Cloud service to meet its growing needs for computing capacity.

Meta is seeking outside partners to help it fund the massive infrastructure needed to power AI by offloading $2 billion in data center assets, the company disclosed in a filing earlier this month.

Reporting by Sayantani Ghosh in San Francisco and Angela Christy in Bengaluru; additional reporting by Yazhini MV in Bengaluru; editing by Alan Barona