Prime Highlights
- Meta signed a $10B+ cloud agreement with Google, spanning six years, to power AI infrastructure.
- The partnership strengthens Google’s cloud position against AWS and Microsoft Azure.
Key Facts
- AI infrastructure to support Meta’s Llama family of models and generative AI across platforms.
- Google Cloud Q2 2025 revenue: $13.6B, up 32% YoY, outpacing Alphabet’s overall 13.8% growth.
- The partnership strengthens Google’s cloud position against AWS and Microsoft Azure.
Background
Meta has signed a cloud agreement with Google worth over $10 billion over six years. This deal will help strengthen Google’s position against bigger rivals in the cloud arena of Amazon Web Services (AWS) and Microsoft Azure. The deal, which is primarily focused on AI infrastructure, is among the biggest ones that Google has ever signed with any of its clients.
Meta, which has long depended heavily on AWS while also using Microsoft Azure, is investing aggressively in AI as it builds its Llama family of models and integrates generative AI across its social platforms. The new agreement with Google will enable more computing power and infrastructure that the social media company will require to boost and expand its workload on artificial intelligence (AI).
The deal will span six years, people familiar with the matter said, with the primary aim being to expand the scope of AI efforts pursued by Meta. The development comes as Meta has projected expenses for 2025 to range between $114 billion and $118 billion, with a major share allocated to AI infrastructure and talent.
For Google, the partnership represents a critical step in its efforts to grow cloud revenues and attract enterprise clients. Google Cloud has recorded revenue of 13.6 billion in the second quarter of 2025 of which is 32 percent more than it did last year, and the operating income was 2.83 billion. This growth is faster than the overall growth of Alphabet of 13.8%, which underscores the growing role that the cloud plays in the businesses of Google.
Although Meta and Google are competitors in the online advertising business, the demand to support its operations with huge computing power has compelled Meta to take a multidimensional stand on its cloud-service partnerships. The firm still runs Amazon Web Services, Google, and Azure deals of its own, but the Google deal implies a greater partnership in AI-powered infrastructure.
Industry observers view the pact as yet another indication that the world cloud industry is increasingly becoming more competitive as providers of a continuum of AI workloads compete in multi-billion-dollar transactions between technology giants.
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