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Meta and Google Cloud Partnership
Meta Platforms has entered a $10 billion deal with Google Cloud, marking a significant partnership between two top competitors in the digital ad market. The agreement, announced in late October 2025, allows Meta to access Google Cloud’s infrastructure for storage, server, and networking services over the next six years.
Under the terms, Meta will make payments totaling $10 billion, while Google Cloud, which previously generated $49 billion in revenue over the trailing 12 months, hopes the partnership will bolster its market presence against rivals AWS and Azure. This collaboration occurs as Alphabet earned 74% of its revenue from digital advertising in the first half of 2025, a decrease from 76% the previous year, emphasizing Alphabet’s aim to diversify its revenue streams.
Simultaneously, the partnership could enhance Alphabet’s appeal to investors, given its comparatively low price-to-earnings (P/E) ratio of 22 among major tech stocks. The deal underscores the increasing demand for cloud services as Meta continues to advance its AI capabilities.
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