Meta secured a six-year, $10 billion contract with Google Cloud to use datacenter servers, storage, networking and other services to support AI expansion. The deal represents a major win for Google Cloud and follows a recent partnership with OpenAI that shifted business away from Microsoft Azure. Google Cloud grew revenue 32% year-over-year, reporting $13.6 billion in Q2 revenue and $2.83 billion operating income. Cloud market dynamics show AWS leading IaaS with 37.7% share while Microsoft and Google hold smaller but growing shares. Meta plans to invest heavily—hundreds of billions—in AI infrastructure and datacenters.
Google has won a six-year, $10 billion cloud contract from Meta, supporting the tech giant's plans to ramp up investment in AI. According to two people who spoke to , the deal covers the use of Google Cloud's datacenter servers, storage, networking and other services. A source close to Google has since told ITPro that the story is correct. The agreement is a big coup for Google, and follows a recent deal with OpenAI which saw it pry away business away from Microsoft Azure.
Google has been trailing behind Amazon Web Services (AWS) and Microsoft Azure in the cloud market - but it's catching up, recording growth of more than 30% last year, according to Canalys, compared with just 17% for AWS. Meanwhile, according to Gartner, AWS still leads the pack in the Infrastructure as a Service (IaaS) cloud market, with a 37.7% market share. Microsoft, meanwhile, has seen its market share rise from 23% to 23.9%, while Google's increased from 8.2% to 9%.
Google Cloud last month reported $2.83 billion in operating income, on $13.6 billion in revenue for the second quarter, with the unit's revenue growth of 32% ahead of the 13.8% growth for the company as a whole. This agreement forms part of Meta's big AI infrastructure drive, with CEO Mark Zuckerberg saying that the firm plans to invest hundreds of billions of dollars in the technology and underlying foundations to support the strategy.
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