Meta Signs Over $10 Billion Cloud Deal with Google, Reports Reveal

NEW YORK, Aug. 22, 2025 – Google has signed a six-year agreement for a cloud computing deal with Meta Platforms worth more than $10 billion, said media reports. This will be the search giant's second big agreement recently after one with OpenAI.

As a part of the agreement, Meta will use Google Cloud’s servers, storage, networking and other services, media reports said while quoting anonymous sources.

There has been no official communication from Google and Meta to multiple media requests for comment.

Notably, the deal was first reported by the Information and the news comes after Meta CEO Mark Zuckerberg's statement in July that the company has earmarked hundreds of billions of dollars to build several massive AI data centers.

The company raised the bottom end of its annual capital expenditures forecast by $2 billion, to a range of $66 billion to $72 billion last month.

Meta’s hunt continues for outside partners to help it fund the massive infrastructure needed to power AI by offloading $2 billion in data center assets, the company disclosed in a filing earlier this month.

In June, Reuters reported that OpenAI was planning to add Alphabet's Google Cloud service to meet its growing needs for computing capacity, a surprising collaboration between two prominent competitors in the artificial intelligence sector.

Why is the Deal Important?

Interestingly, the development is being touted to be important not just because Google and Meta have long been competitors in digital advertising, but also because Meta has historically been more oriented towards Amazon Web Services, or AWS, and comparatively less inclined towards Microsoft Azure.

As a part of diversification of its cloud dependencies, Meta has categorically stated that it cannot rely on a single provider at a time when demand for high-performance computing has exploded.

Meta’s proactive foray into AI infrastructure has been emphasised by recent financial disclosures. In July, the company raised its 2025 capital expenditure forecast to between $66 billion and $72 billion, with overall expenses projected at $114–118 billion.

A large chunk of money has been set aside for AI-focused data centres and talent acquisition. CEO Mark Zuckerberg has been upfront about the company’s goal, noting that Meta is willing to spend “hundreds of billions of dollars” to build what he calls personal superintelligence.

The deal with Google Cloud is also notable for its timing. Alphabet’s cloud unit posted $13.6 billion in revenue in the second quarter of 2025, a 32 percent year-on-year increase that far outpaced the parent company’s overall growth of 13.8 percent.

Google’s Global Expansion of AI Mode You Should Know

Users Can Delve Deep: Amid a barrage of deals, Google parent’s cloud-computing unit recorded an almost 32 percent jump in second-quarter revenue in July, which surpassed expectations.

Google is launching a global expansion of AI Mode, its feature that provides users an option to ask complex questions and follow-ups to delve deep on a topic directly within Search, the company announced on Thursday.

The tech giant is also bringing new agentic and personalized capabilities to the feature, it said.

AI Mode to Maximum Countries: The expansion also involves Google bringing AI Mode to 180 new countries in English. Till now, Google has only been available to users in the U.S., U.K., and India. Google plans to bring the feature to more languages and regions soon.

The new agentic features will allow users to now use AI Mode to find restaurant reservations, and going forward they would be able to find local service appointments and event tickets.

Book a Dinner Table: In addition, users can book dinner reservations with multiple preferences, such as party size, date, time, location, and preferred cuisine.

The search by AI across different reservation platforms will try and find real-time availability for restaurants that match the inquiry. It then brings to fore a curated list of options to choose from.

This new capability is rolling out for Google AI Ultra subscribers in the U.S. through the “Agentic capabilities in AI Mode” experiment in Labs, Google’s experimental arm.

Google and Meta’s collaboration signals a new era in AI infrastructure, where tech rivals join forces to meet the exploding demand for high-performance computing.

Inputs from Saqib Malik

Editing by David Ryder