Meta Signs $10B+ Cloud Deal with Google for AI Infrastructure

story

AUG 22

Above: A photo illustration of the Meta Platforms Inc. logo displayed on a smartphone. Image copyright: Cheng Xin/Getty Images

story last updated AUG 22

The Spin

Narrative A

This massive deal proves that Google Cloud is finally gaining serious ground against AWS and Azure. The 32% growth demonstrates that businesses are choosing Google's competitive pricing and AI-focused services. Landing both Meta and OpenAI as major clients illustrates that Google's cloud strategy is working perfectly.

AI Invest Alphabet Inc.

Narrative B

Meta's deal with Google is a necessary part of the company's long-term strategy. For the time being, Google Cloud services will serve as a stopgap measure until Meta finalizes its multi-gigawatt superclusters, such as Prometheus and Hyperion, which will provide the company with a sustainable solution to its computing needs.

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Metaculus Prediction

There is a 19% chance that the CEO of OpenAI, Meta, or Alphabet (Google) will publicly commit to specific limitations on their company’s AI system autonomy before January 1, 2027, according to the Metaculus prediction community.