Meta Platforms has sealed a deal to ink a long-term cloud computing deal worth more than 10 billion dollars with Google in a six-year contract, a source familiar with the matter told AFP Thursday. In the arrangement, Meta will use Google datacenter servers and storage units, networking and related services.
The world leader in social networking, driven by CEO Mark Zuckerberg, is spending hugely on innovative technology, building up its talent pool of the finest minds within its competition, OpenAI and Apple, to boost its research and development projects. This is really exciting to create personalized digital intelligence to the whole world, Zuckerberg stated on a current earnings call.
The partnership is one of the biggest deals in the 17-year history of Google cloud unit. The cloud division of Alphabet is expected to have revenues of about 50 billion dollars in 2022. In the interim, Meta has recorded good financial performance in its second quarter, with its capital spending rising to 17 billion, to expand its computing infrastructure. The total amount is estimated to grow between 66 and 72 billion dollars in the year 2025.
Read more: Pakistan, Meta Discuss AI, Digital Growth
Though the company had a very good quarter, there are doubts about its future strategy as it chases the transformative technologies segments aggressively. In a statement issued publicly, Zuckerberg stressed that the years ahead would be critical in the development of the user-focused digital intelligence tools.
The collaboration with Google supports Meta in its development of the next generation of user-centered digital intelligence products alongside the enhancement of technological resources.
