{"id":366331,"date":"2025-08-23T03:57:19","date_gmt":"2025-08-23T03:57:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/366331\/"},"modified":"2025-08-23T03:57:19","modified_gmt":"2025-08-23T03:57:19","slug":"meta-strikes-10bn-deal-with-google-for-cloud-services","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/366331\/","title":{"rendered":"Meta strikes $10bn deal with Google for cloud services"},"content":{"rendered":"<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Meta Platforms has agreed a deal worth more than $10 billion with Alphabet\u2019s Google for cloud computing services, as the race to create artificial intelligence tools creates surprising business partnerships. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Under the six-year agreement, Meta will use Google Cloud\u2019s servers, storage, networking and other services, according to a source close to the deal. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">The deal, first reported by The Information, is the first significant cloud computing tie-up between Meta and Google. It underscores how massive computing demands to train and deploy AI models are driving business deals between AI rivals. <\/p>\n<p><img decoding=\"async\" alt=\"Google headquarters in Mountain View, California.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/\/a23f9ef4-3a69-485a-aeda-0976a89cc193.jpg\" class=\"responsive-sc-1nnon4d-0 bAbKns\"\/><\/p>\n<p>Google\u2019s cloud infrastructure is in high demand<\/p>\n<p>TAYFUN COSKUN\/ANADOLU VIA GETTY IMAGES<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Shares in Alphabet, the owner of Google, rose $4.83, or 2.4 per cent, to $205.45 on Friday morning in New York, after the deal was first reported. Shares of Meta gained $15.33, or 2.1 per cent, to $754.42 amid a broader US equities rally after US Federal Reserve chairman Jerome Powell pointed to a <a href=\"https:\/\/www.thetimes.com\/article\/fed-interest-rate-decision-today-jerome-powell-jf7v2zlzd\" class=\"link__RespLink-sc-1ocvixa-0 csWvlP\" target=\"_blank\" rel=\"noopener\">possible interest-rate cut<\/a> in September. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Mark Zuckerberg, chief executive of Meta, reiterated last month that the owner of Facebook and Instagram would spend hundreds of billions of dollars to build massive AI data centres.<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">The company raised the bottom end of its annual capital expenditures forecast by $2 billion, to a range of $66 billion to $72 billion in July. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">\u2022 <a href=\"https:\/\/www.thetimes.com\/article\/how-fingers-will-get-burnt-if-the-ai-flame-dies-down-wct7f8xmm\" class=\"link__RespLink-sc-1ocvixa-0 csWvlP\" target=\"_blank\" rel=\"noopener\"><b>Patrick Hosking: Fingers will get burnt if the AI flame dies down<\/b><\/a><\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Meta is seeking outside partners to help it fund the massive infrastructure needed to power AI by offloading $2 billion in data centre assets, the company disclosed in a filing this month. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Meta has poached dozens of AI researchers from OpenAI, Anthropic and Google DeepMind in recent months to work on Zuckerberg\u2019s mission to build what he calls \u201cpersonal superintelligence\u201d. Researchers have been offered pay of up to $100 million, according to OpenAI\u2019s chief executive Sam Altman.<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">\u201cWe are truly only investing more and more into Meta Superintelligence Labs as a company. Any reporting to the contrary of that is clearly mistaken,\u201d Alexandr Wang, Meta\u2019s chief AI officer, said in a social-media post on X on Thursday.<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Wang was responding to media reports that Meta had frozen hiring in its AI division. <\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">\u201cAll that\u2019s happening here is some basic organisational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises,\u201d a spokesman for Meta said.<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">\u2022 <a href=\"https:\/\/www.thetimes.com\/article\/we-should-be-worried-that-the-ai-utopia-is-being-shaped-by-men-dh2mjsv6b\" class=\"link__RespLink-sc-1ocvixa-0 csWvlP\" target=\"_blank\" rel=\"noopener\"><b>We should be worried that the AI utopia is being shaped by men<\/b><\/a><\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">Last month OpenAI, the maker of ChatGPT, also said it expected to use <a href=\"https:\/\/www.thetimes.com\/article\/alphabet-profit-jumps-29-percent-as-cloud-computing-sales-boom-8nktklldj\" class=\"link__RespLink-sc-1ocvixa-0 csWvlP\" target=\"_blank\" rel=\"noopener\">Google\u2019s cloud infrastructure<\/a>, in a collaboration between two prominent competitors in the artificial intelligence sector.<\/p>\n<p class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">OpenAI also relies on services from Microsoft, Oracle and CoreWeave for computing capacity. <\/p>\n<p id=\"last-paragraph\" class=\"responsive__Paragraph-sc-1pktst5-0 gaEeqC\">AI-related demand helped Alphabet\u2019s cloud-computing unit to deliver an almost 32 per cent jump to $13.6 billion in second-quarter revenue in July, which surpassed expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"Meta Platforms has agreed a deal worth more than $10 billion with Alphabet\u2019s Google for cloud computing services,&hellip;\n","protected":false},"author":2,"featured_media":366332,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3163],"tags":[323,1942,53,16,15],"class_list":{"0":"post-366331","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-technology","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115076074571160983","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/366331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=366331"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/366331\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/366332"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=366331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=366331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=366331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}