Google (GOOGL) Stock: Meta Signs $10 Billion Six-Year Cloud Computing Agreement

TLDR

Table of Contents

Meta Platforms and Google Cloud have agreed on a cloud computing deal worth over $10 billion spanning six years
Meta will use Google’s servers, storage, networking and other cloud services under the agreement
Google shares rose more than 1% in premarket trading following the news report
The deal comes after Meta raised its annual capital spending forecast to $66-72 billion for AI infrastructure
This marks Google’s second major cloud deal recently, following a previous agreement with OpenAI

Google has secured a major cloud computing partnership with Meta Platforms worth over $10 billion. The six-year agreement represents one of the largest cloud deals in recent memory.

Google $GOOGL and Meta Platforms $META reportedly just signed a $10 Billion deal over 6 years for Meta to use
"Google Cloud’s servers, storage, networking and other services" – The Information pic.twitter.com/XH4qBL0hKf
— Evan (@StockMKTNewz) August 21, 2025

Under the deal, Meta will use Google Cloud’s complete suite of services. This includes servers, storage, networking and other infrastructure components.

The news sent Google shares up more than 1% in premarket trading on Friday. Investors responded positively to the revenue opportunity for Google’s cloud division.

Meta CEO Mark Zuckerberg previously outlined plans to spend hundreds of billions on AI data centers. The company raised its annual capital spending forecast last month to $66-72 billion.

Infrastructure Outsourcing Strategy

Meta is actively seeking outside partners to help fund its massive AI infrastructure needs. The company disclosed plans to offload $2 billion in data center assets earlier this month.

This outsourcing approach allows Meta to scale its AI operations without bearing the full infrastructure burden. Google Cloud provides the technical capabilities Meta needs for its AI ambitions.

The partnership makes strategic sense for both companies. Meta gets access to proven cloud infrastructure while Google secures a major long-term revenue stream.

Google’s cloud division has shown strong growth momentum recently. The unit delivered almost 32% revenue growth in the second quarter, beating analyst expectations.

Competitive Cloud Landscape

This marks Google’s second major cloud partnership in recent months. The company previously signed a deal with OpenAI to provide additional computing capacity.

These partnerships highlight the competitive dynamics in the AI infrastructure space. Major tech companies are forming alliances to meet growing computational demands.

Meta has been restructuring its AI operations recently. The company implemented an indefinite hiring freeze in its artificial intelligence division.

The freeze comes as Meta overhauls how it approaches AI development. The company is focusing resources on core AI initiatives rather than expanding headcount.

Google has been gaining ground in the AI race with its Gemini models. The company’s AI capabilities have been viewed favorably compared to some competitors.

The cloud deal provides Google with steady recurring revenue from a major customer. Long-term contracts like this offer predictable cash flows for the cloud business.

Meta’s decision to partner with Google reflects the scale of infrastructure needed for modern AI. Building this capacity internally would require enormous capital investment.

The agreement spans six years, providing both companies with long-term planning visibility. This extended timeline allows for strategic resource allocation and capacity planning.

Google’s cloud business continues to compete with Amazon Web Services and Microsoft Azure. Major customer wins like Meta help establish credibility in the enterprise market.

The deal structure allows Meta to focus on AI model development rather than infrastructure management. This division of labor could accelerate Meta’s AI progress.

Meta disclosed the partnership details in recent regulatory filings with the Securities and Exchange Commission. The company has been transparent about its infrastructure investment plans.

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