It has been reported that Meta has finalized a cloud agreement with Google exceeding $10 billion

A source familiar with the situation informed Reuters on Thursday that Google has allegedly finalized a cloud computing contract with Meta Platforms worth over $10 billion, spanning six years. This deal marks the search giant’s second significant agreement in recent weeks, following one with OpenAI.

The source, who requested anonymity due to the confidential nature of the talks, stated that Meta will utilize Google Cloud’s servers, storage, networking, and additional services as part of the agreement.

This news follows remarks from Meta CEO Mark Zuckerberg in July, where he suggested that the company would invest hundreds of billions of dollars in constructing multiple large-scale data centers for artificial intelligence.

The company adjusted its annual capital expenditure forecast last month, increasing the lower end by $2 billion and setting it within a range of $66 billion to $72 billion.

The company disclosed in a filing earlier this month that Meta is looking for external partners to help fund the enormous infrastructure required for AI by outsourcing $2 billion in data center assets.

As part of this sequence of accords, in July the cloud computing division of Google’s parent company reported a revenue increase of almost 32% for the second quarter, surpassing expectations.