Meta signs over $10 billion Cloud Deal with Google

Meta has signed a six-year cloud deal with Google, reportedly worth over $10 billion, according to a source speaking to Reuters. The agreement means Meta will use Google Cloud for servers, storage, networking, and other services to support its growing infrastructure needs. Neither company has officially commented yet, but the deal was first reported by The Information.

This deal follows Meta’s ongoing push to invest in AI. In July, Mark Zuckerberg said the company would spend hundreds of billions on building out AI data centres. Meta has since increased its annual capital spend forecast to between $66 and $72 billion and recently revealed plans to sell off $2 billion worth of data centre assets to help cover costs.

The decision to partner with Google which is traditionally seen as a competitor really highlights just how much demand there is for cloud infrastructure in the AI space. Google also signed a similar deal with OpenAI, showing how fast things are moving.

For Google, it’s another big win for its cloud business, which reported 32% growth in Q2.

What This Means For Us:

As Meta upgrades its AI capabilities, we’ll likely see improvements to the tools we use day to days like better targeting, more automation, and smarter campaign performance across Meta platforms. For Irish advertisers, it is something to keep an eye on as the tech keeps evolving.

 Source:

Reuters, RTE