Tech frenemies: Meta strikes a $10+ billion AI cloud deal with rival Google

By Christine Ji

Meta has signed a six-year deal to use Google’s cloud-computing services as it builds out its AI infrastructure

As Meta races to “build personal superintelligence,” it taps cloud computing resources from Google.

Meta Platforms Inc. has signed a $10+ billion cloud deal with Alphabet Inc.’s Google to build out its artificial-intelligence infrastructure.

Meta (META) will use Google’s (GOOGL) (GOOG) cloud-computing services for the duration of the six-year contract, The Information reported.

The deal counters speculation about a pullback in Meta’s AI ambitions, which followed news that the company had frozen hiring in its AI unit.

The deal highlights just how intense the AI arms race between the biggest tech companies has become. In July, Meta Chief Executive Mark Zuckerberg said that the company was planning to invest “hundreds of billions of dollars” to develop superintelligence. Meta is building two massive data centers, named Prometheus and Hyperion, which will both provide multiple gigawatts of capacity. The company has also aggressively poached top AI talent from OpenAI and invested $14.3 billion into AI startup Scale AI.

The sheer scale of developing AI often results in rivals teaming up. While Meta is building out its own data centers, Prometheus isn’t expected to come online until 2026, and Hyperion will take until 2030 to be ready. In the meantime, Meta is looking for immediate access to AI infrastructure through its agreement with Google. To accelerate its timeline, Meta is taking creative measures by housing temporary data-center capacity in tents, the company confirmed last month.

Earlier this year, OpenAI also partnered up with Google to access its cloud infrastructure. The AI startup had previously exclusively used Microsoft Corp.’s (MSFT) cloud-computing services due to Microsoft’s significant stake in OpenAI. But as compute demand outpaced supply, OpenAI tapped into outside sources.

Last month, Meta announced during its second-quarter earnings report that it expects total capital expenditures for 2025 to be between $114 billion and $118 billion.

Representatives from Meta and Google did not immediately respond to MarketWatch’s request for comment.

Also read: This is the critical detail that could unravel the AI trade: Nobody is paying for it.

-Christine Ji

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08-22-25 0926ET

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