Meta has entered a six-year agreement to spend over $10 billion on Google cloud services, focusing on artificial intelligence infrastructure. This deal comes as Google aims to compete with larger cloud providers like Amazon Web Services and Microsoft Azure, while Meta seeks to enhance its cloud capabilities amid heavy investments in AI.
Google plans to sever its relationship with Scale AI, its largest customer, following Meta's acquisition of a 49% stake in the AI data-labeling startup. This shift comes as Google seeks to redirect its $200 million investment towards other competitors, while Scale AI's leadership transitions to Meta amid concerns over its reliance on key clients.