Meta makes huge cloud computing deal with Google

Meta makes huge cloud computing deal with Google
by AFP Staff Writers
San Francisco, United States (AFP) Aug 22, 2025

Meta has made a cloud computing deal with Google worth more than $10 billion over the course of six years, a source close to the transaction told AFP Thursday.

The source confirmed a report at tech news outlet The Information about the arrangement, which will include Meta using Google datacenter servers, storage, networking and other services.

Meta declined to comment.

Meta chief executive Mark Zuckerberg has embarked on a major artificial intelligence spending spree, poaching top researchers with expensive pay packages from rivals like OpenAI and Apple as he builds a team to pursue what he calls AI superintelligence.

"I'm excited to build personal superintelligence for everyone in the world," Zuckerberg said in an earnings call late last month.

Meta is locked in a bitter rivalry with other tech behemoths as they invest heavily in AI.

The deal with Meta is among the biggest in the 17-year history of Google's cloud unit, according to the source.

Google parent Alphabet's cloud computing business was on pace to bring in $50 billion over the course of the year, the company said in a recent earnings report.

Meta also reported robust second-quarter financial results, and significantly increased its capital expenditures to $17 billion in the quarter, primarily for AI infrastructure investments.

Meta projected total 2025 capital spending between $66 billion and $72 billion.

A strong quarter "won't shield Meta from questions concerning the company's future as it breathlessly tries to keep up in the AI race," Emarketer analyst Minda Smiley said of the quarterly earnings.

In a post outlining Meta's AI strategy, Zuckerberg has signaled that the remainder of the decade would be a transformative period for artificial intelligence development and that the company's priority was to bring AI to its users.

Google to provide Gemini AI tools to US government
San Francisco, United States (AFP) Aug 21, 2025 -

Google will provide its Gemini artificial intelligence tools to US federal agencies practically free, the government announced Thursday.

A suite of AI and cloud computing services called "Gemini for Government" from Google is intended to speed the adoption of the technology across the US government, the General Services Administration (GSA) said in a joint statement.

"Gemini for Government gives federal agencies access to our full stack approach to AI innovation," added Google chief executive Sundar Pichai.

"So they can deliver on their important missions."

AI tools being provided include generation of video, images, or ideas as well as digital "agents" capable of independently tending to complex tasks.

US agencies will pay a scant fee of less than a dollar for the AI tools, building on a previous agreement that saw Google Workspace software provided to the government at a major price discount, according to the GSA.

"Federal agencies can now significantly transform their operations by using the tools in Gemini for Government," said GSA acting administrator Michael Rigas.

The deal comes just weeks after Google rival OpenAI said it was letting the US government use a version of ChatGPT designed for businesses for a year for just $1.

"By giving government employees access to powerful, secure AI tools, we can help them solve problems for more people, faster," OpenAI said in a blog post announcing the alliance.

Earlier this year, the US Department of Defense awarded OpenAI a $200 million contract to put generative AI to work for the military.

OpenAI planned to show how cutting-edge AI can improve administrative operations, such as how service members get health care, and also has cyber defense applications, the startup said in a post.