Meta makes huge cloud computing deal with Google: source

Core Insights - Meta has entered into a cloud computing agreement with Google valued at over $10 billion for a duration of six years [1][2] - The deal will involve Meta utilizing Google’s datacenter servers, storage, networking, and other services [2] - Meta's CEO Mark Zuckerberg is heavily investing in artificial intelligence, aiming to develop what he refers to as AI superintelligence [2][5] Financial Performance - Meta reported strong financial results for the second quarter, with capital expenditures rising to $17 billion, primarily for AI infrastructure [4] - The company projects total capital spending for 2025 to be between $66 billion and $72 billion [4] - Google’s cloud computing business is expected to generate $50 billion in revenue for the year [3] Strategic Direction - Zuckerberg has indicated that the next decade will be transformative for AI development, with a focus on bringing AI capabilities to users [6] - The deal with Google is one of the largest in the history of Google's cloud unit, highlighting the competitive landscape in the tech industry [3] - Meta is in a competitive race with other tech giants, investing significantly in AI to maintain its position [3][4]