Google scores six-year Meta cloud deal worth over $10B
20 comments
·August 22, 2025pwarner
mandeepj
> That's a lot of data centers. Why do they need a tiny bit more from Google?
Data centers don’t pop up overnight, until then they are going to use a vendor :-)
foobiekr
this is the correct answer.
vasco
This can be as simple as someone taking the time to collect all the GCP accounts accumulated over the years for random projects into an enterprise committed spend. Doesn't have to be anything that crazy or new.
bmau5
Assuming this has a lot to do with Google's TPUs. Google is well positioned to be the AWS for AIs given the increased efficiency of TPUs, which only they have.
liuliu
GCP getting second tier TPU allocation b/c TPU cannot be enough to meet GDM needs. At this point, it would be very stupid for external customers betting on TPUs (I am looking at Apple).
okdood64
> second tier TPU allocation
What exactly does this mean?
bmau5
Why would it be stupid?
geodel
Could be other way round too. Meta wants to use their own data centers capacity for their custom AI solutions. Generic compute and storage for online and batch workloads can be moved to Google cloud infra.
bmau5
Yep definitely could be
thewebguyd
Assuming they don’t screw it up. Google has a ton of great stuff but when it comes to actually making into a product they flounder. GCP still needs a lot of work.
okdood64
What more of a product do you need than being able to boot a machine with a TPU strapped on at relative low cost?
burnt-resistor
GCP did that by firing senior support people and replacing them with more junior, offshore ones.
null
petesergeant
Would be very interested to know how this is structured, as presumably it's a hedge for Meta's uncertainty about how much compute they'll need.
calmbonsai
Google needs deal this due to flights away from its cloud.
It can't compete with Azure for simple/coarse-grained services and AWS for complex/fine-grained services.
Atm, Google cloud is only good for cheap high-ram one-run-centric compute (AWS is cheaper for generic compute and reserved compute), simple container execution (Cloud Run), and ~100 TB bulk storage.
thevillagechief
Your phrasing seems off. Why does Meta care what Google needs? It would seem that it's exactly backwards. Meta needs this because training resources are scarce. And Google is in the enviable position of having TPUs.
sokoloff
I read GP as implying GCP would be inclined to negotiate aggressively to be sure to secure this deal, due to the factors they list.
Both companies need to get something out of the deal. Listing the benefits to only one side is probably missing part of the story.
mrbungie
> Atm, Google cloud is only good for cheap high-ram one-run-centric compute (AWS is cheaper for generic compute and reserved compute), simple container execution (Cloud Run), and ~100 TB bulk storage.
You are crazy if you imply AWS Athena or Azure Synapse are better than BigQuery.
simoncion
> [GCP] can't compete with Azure...
Based on my professional experience, when we ignore cost [0] my ranking of the big three for "plain old computing" (that is, just compute, networking, and storage workloads) is AWS, GCP, Azure.
Azure is very, very flaky. Things often break for no clear reason, or things are changed in unexpected ways without warning, and then quietly reverted back. [1] I used to say that the only consistently good thing about Azure was that you could throw an entire Subscription in the trash and have everything in there be destroyed... but even that has become intermittently unreliable!
Given how godawful Azure is, I expect that companies use it either because they think they need it for its AD integration, or because they get very deep discounts on Windows licenses for VMs running on Azure.
[0] Both because I never had to pay the bills and (I assume) our cost estimators were always full of lies because the tooling (and I) had no idea what discounts we had negotiated.
[1] (Don't) ask me about the time Azure added in some sort of multi-minute "cooldown" time for reuse of a statically-assigned IP address that was assigned to a VM that Azure reported was completely destroyed, and we were attempting to assign to a brand new VM. Creation of the new VM kept failing with some wacky error. Azure support was clueless, and the problem vanished and came back several times over the course of a year.
Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?