Google Secures $10 Billion Cloud Computing Deal From Meta Platforms

Google parent company Alphabet (GOOGL) has secured a $10 billion U.S. deal to provide cloud computing services to Meta Platforms (META) over the next six years. Google is trying to win big cloud computing contracts as it competes against rivals such as Amazon Web Services (AMZN) and Microsoft Azure (MSFT). In recent months, Google has also won cloud business from privately held OpenAI, which had previously been dependent on Microsoft’s Azure infrastructure.In its most recent financial results, Alphabet said that its Google Cloud unit produced $2.83 billion U.S. in operating income on $13.6 billion U.S. in revenue during the second quarter. Cloud computing revenue growth of 32% outpaced a 13.8% total sales increase for the company.Meta Platform’s deal with Google is reportedly focused on artificial intelligence (A.I.) infrastructure and comes as the company seeks more computing power and storage. Meta recently said that it expects total expenses for 2025 in a range of $114 billion U.S. to $118 billion U.S. The company has been investing heavily in A.I. infrastructure and employees.Meta and Google are rivals in online advertising and A.I. But Meta Platforms needs all the cloud infrastructure it can access for its growing data centres.Meta also has commitments to use the cloud services of both Amazon and Microsoft.GOOGL stock has risen 5% this year to trade at $199.75 U.S. per share.