Tech giants Meta and Google seal a multi-billion dollar AI partnership for the forthcoming six years

Meta and Google Form Major Six-Year AI Partnership

In a significant move for the tech industry, Meta, the parent company of Facebook and Instagram, has entered into a multi-billion-dollar deal with Google. The collaboration, spanning over six years, is expected to focus on improving Meta's AI model, Llama.

According to reports by Bloomberg, citing insiders, the deal is not a short-term arrangement. The volume of the deal is at least $10 billion, with Meta paying Google for cloud computing services, including servers and storage.

Google Cloud, known for its lower prices compared to other providers, according to Bloomberg analysts, will primarily be used by Meta for AI infrastructure. This partnership marks a significant step in the AI race among big tech companies.

The deal comes after Meta and Google had already cooperated in 2023, allowing developers to use Google's cloud to access Meta's AI models. This partnership is seen as a potential advantage for Google Cloud in the market.

Mark Zuckerberg's company, Meta, is the one making the multi-billion-dollar payment. However, Meta declined to comment when contacted by Bloomberg, while Google confirmed the deal.

In addition, the details of the deal suggest that Meta is expanding its data center infrastructure. Some of Meta's data centers, which the company is expanding, will not be online for a few years.

The deal between Meta and Google is a significant partnership in the tech industry. It is worth noting that Amazon and Microsoft have been dominant in the area of cloud services for AI and application development.

In a related development, Meta CEO Mark Zuckerberg has announced plans to invest hundreds of billions of dollars in AI and necessary infrastructure. This investment is expected to further strengthen Meta's position in the AI race.

The exact size of the multi-billion-dollar deal between Meta and Google, which is set to last for six years, is over 10 billion US dollars. The deal, however, is not reported to extend beyond the previously stated six-year duration, nor does it have a specific financial value beyond the minimum $10 billion.

In conclusion, the partnership between Meta and Google is a significant step in the AI race among big tech companies. With Meta investing heavily in AI and infrastructure, and Google providing cost-effective cloud services, this partnership promises to be a game-changer in the tech industry.