KEY TAKEAWAYS
- Meta Platforms has reportedly agreed to spend more than $10 billion on cloud services from Google, as the search giant seeks to catch up with larger rivals in the space, namely Amazon Web Services and Microsoft Azure.
- The deal struck by Alphabet’s Google spans six years, according to CNBC.
- Google reportedly struck a cloud deal in June with OpenAI, which had earlier relied on Microsoft’s Azure infrastructure.
Meta Platforms (META) has reportedly agreed to spend more than $10 billion on cloud services from Google, as the search giant seeks to catch up with larger rivals in the space, namely Amazon Web Services and Microsoft Azure.
The deal struck by Alphabet’s (GOOGL) Google spans six years, according to CNBC. The Information had reported the news earlier.
CNBC said, citing a person familiar with the matter, that “Meta’s deal with Google is mainly around artificial intelligence infrastructure.”
Google’s cloud business has been booming. In July, Alphabet said its second-quarter Google Cloud revenue jumped 32% year-over-year to $13.62 billion, as the tech giant posted quarterly results that topped estimates. In June, Google reportedly won a contract from ChatGPT developer OpenAI, which had earlier relied on Microsoft’s (MSFT) Azure infrastructure.
Meta and Google didn’t immediately respond to requests for comment.