Meta and Google seal 10B cloud deal

Meta signs a cloud deal with Google worth over $10 billion to power its AI initiatives over six years.

Meta and Google seal 10 billion cloud deal to power AI growth

Meta Platforms has struck a cloud deal with Alphabet's Google worth more than $10 billion to support its AI ambitions. The six-year agreement covers Google's cloud servers, storage, and networking services and marks a major milestone for both companies. Meta has traditionally built much of its own infrastructure but has increasingly pursued a multi-cloud approach, relying on Amazon Web Services and Microsoft Azure while renting capacity from Oracle and CoreWeave. The deal expands Meta's vendor base and strengthens its ability to scale AI workloads across its apps such as Facebook, Instagram, and WhatsApp.

Alphabet's Google Cloud has described the agreement as its largest to date in terms of a single customer. In the latest quarterly update, Google Cloud revenue rose 31.4% year over year, underscoring its push to win larger enterprise contracts as it competes with AWS and Microsoft. The deal positions Meta as one of the world's largest cloud customers, which could influence future pricing dynamics and service commitments.

Analysts say the pact signals a broader shift in AI infrastructure, where the biggest players seek deep, long-term commitments from major cloud providers. Google gains a major foothold in enterprise workloads while Meta reduces reliance on any single vendor and spreads risk across multiple platforms. Yet the arrangement also raises questions about cost, governance, and leverage; if computing needs surge or regulatory scrutiny tightens data controls, the agreement could become a constraint rather than a shield.
The move illustrates Meta's willingness to bankroll AI at scale while maintaining flexibility through a multi-cloud approach. For investors, it shows Meta prioritizing growth in AI over short-term cost savings, even as cloud bills rise and vendor terms become more significant. The wider cloud market could see more mega deals like this as AI models grow and require ever larger compute resources.

Highlights

Markets will watch how this alliance holds up under cost and control questions.