Shares of Alphabet Inc (NASDAQ:GOOGL) rose over 1% in premarket trading Friday following reports that Meta Platforms (NASDAQ:META) has struck a cloud computing deal with Google valued at more than $10 billion, according to The Information citing sources close to the matter.
Under the agreement, Meta will rely on Google Cloud for servers, storage, and related services over a six-year period.
The news comes amid a major restructuring of Meta’s artificial intelligence division, which has implemented an indefinite hiring freeze. Meta, along with other Wall Street AI “hyperscalers,” is competing to develop superintelligent AI as investors seek returns on the massive funds funneled into AI projects.
While Google is also active in the AI race, it has been viewed as pulling ahead with its Gemini AI models.
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