Google shares up on report of $10 bln cloud deal with Meta

Published 22/08/2025, 00:54
Updated 22/08/2025, 09:46
© Reuters

Investing.com-- Meta Platforms (NASDAQ:META) and Alphabet’s Google (NASDAQ:GOOGL) have agreed on a cloud computing deal worth more than $10 billion, the Information reported on Thursday, citing sources familiar with the matter.

The deal will see Meta use Google Cloud’s servers, storage, and other services over the next six years, the report said. 

Shares in Alphabet rose more than 1% in premarket trading Friday. 

News of the deal comes after Meta undertook a major overhaul of its artificial intelligence division, which includes an indefinite hiring freeze in the division.

The company, along with Wall Street’s so-called AI Hyperscalers, is racing to build superintelligent AI amid growing calls from investors for returns on the hundreds of billions of dollars poured into AI development.

Google is also part of the AI race, but was seen pulling ahead of Meta with its Gemini models.

(Ambar Warrick contributed to this report.)

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