In this articleGOOGLMETA your favorite stocksCREATE FREE ACCOUNTMeta CEO Mark Zuckerberg makes a keynote speech at the Meta Connect annual event at the company's headquarters in Menlo Park, Calif., on Sept.
25, 2024.Manuel Orbegozo | ReutersMeta has agreed to spend more than $10 billion on Google cloud services, according to two people familiar with the matter.The agreement spans six years, said the people, who asked not to be named because the terms are confidential.
The deal was reported earlier by The Information.Google is aiming to land big cloud contracts as it chases larger rivals Amazon Web Services and Microsoft Azure in cloud infrastructure.
Earlier this year Google won cloud from OpenAI, which had earlier been deeply dependent on Microsoft's Azure infrastructure.Alphabet said in July that the Google Cloud unit, which contains ductivity software subscriptions in addition to infrastructure, duced $2.83 billion in operating income on $13.6 billion in revenue during the second quarter.
Revenue growth of 32% outpaced expansion of 13.8% for the company as a whole.Meta's deal with Google is mainly around artificial intelligence infrastructure, said one of the people.
Meta said in its earnings report last month that it expects total expenses for 2025 to be in the range of $114 billion to $118 billion.
It's heavily in AI infrastructure and talent, building out its Llama family of models and adding AI across its portfolio of services. Meta and Google have long been rivals in online ads.
But Meta needs all the cloud infrastructure it can access.
The company operates data centers and has made commitments to use cloud services from Amazon and Microsoft.Google declined to .Don’t miss these insights from CNBC Morgan Stanley says nu power is gaining momentum, recommends these stocksWells Fargo hikes S&P 500 target as U.S.
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