As competition between major tech companies intensifies, Meta and Google have reached a major $10 billion agreement. Meta has agreed to spend more than $10 billion on Google Cloud services over six years to strengthen its AI infrastructure. This agreement is seen as a strategic step for Meta as it increases its AI investments.

Meta and Google are Collaborating

Two separate sources have confirmed this information. This agreement represents a significant gain for Google, which has been lagging behind competitors like Amazon Web Services and Microsoft Azure in the cloud infrastructure market.

According to financial reports released in July, Google Cloud generated $13.6 billion in revenue and $2.83 billion in operating income in the second quarter. The division’s revenue growth was 32 percent, well above the company’s overall growth of 13.8 percent.

This agreement between Meta and Google focuses specifically on AI infrastructure. The company is making significant investments in AI, developing the Llama model family and integrating AI into its entire service portfolio.

In its financial report released last month, Meta announced that it expects its total expenses to be between $114 billion and $118 billion by 2025. This clearly highlights the company’s AI ambitions.

While Meta and Google have been rivals in the online advertising market for many years, Meta is leveraging all available resources to achieve its AI goals. The company currently has its own data centers and also receives cloud services from Amazon and Microsoft. Earlier this year, Meta also won a cloud service contract from OpenAI, which previously relied on Microsoft Azure.