Meta and Google Cloud Sign Six-Year, $10 Billion Partnership

In today's Cloud Wars Minute, I explore how explosive AI demand
is driving massive infrastructure deals like the one between
Google Cloud and Meta.


Highlights


0:03 — Google Cloud has entered into a six-year
agreement with Meta that's reportedly worth over $10 billion. The
deal encompasses a variety of services, including use of Google
Cloud servers, storage, and networking facilities. This is a
significant deal in terms of the relationship between Meta and
Google, both of which are continuously battling for dominance in
the ad spend space.


00:52 — As the demand for cloud capacity surges,
such deals are not just important, but crucial, given the fierce
competition among top cloud infrastructure providers. And my
colleague Bob Evans recently reported on the explosive demand for
AI services — and how this demand has led to four companies
spending a combined billion dollars a day on capital expenditure
in Q2.


01:29 — Currently, Google Cloud holds the second
position in the Cloud Wars Top 10. However, more deals like this
— especially those that mean potential losses for Microsoft —
could soon elevate Google Cloud to the top spot.


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